Market developments
Equities: Global equity markets moved higher, influenced by central bank commentary, labour market data and international headlines. The S&P 500 remained near record highs, although gains were not evenly distributed, with European markets like the FTSE 100 showing stronger momentum. Concerns about the government shutdown were present but appeared to be largely discounted by the markets.
Fixed Income: Throughout the week, fixed income markets saw volatility as investors reacted to mixed economic data and shifting sentiment around monetary policy. Overall, fixed income yields offered a mix of opportunities, with high-yield bonds attracting interest as spreads tightened slightly, while municipal bonds remained in demand amid a favorable issuance environment.
Commodities: In commodities, gold prices reached lifetime highs, mirroring gains in global markets amid expectations of U.S. Federal Reserve rate cuts and a softer dollar. Crude oil prices, however, fell due to participants reducing positions amid weak demand in the spot market. Concerns about oversupply in the market ahead of an OPEC+ meeting caused the oil market to trend lower towards the end of the week.