Share markets declined in October as bond yields rose sharply, signalling an increased probability of a Trump election victory and ensuing policy that may result in trade wars, elevated inflation and increased deficits and debt (bond issuance).
Share markets posted gains in September despite the ongoing war in Gaza and a significant escalation in the conflict between Israel and Hezbollah in Lebanon.
Market participants remain keenly focused on consumer inflation, believing that central banks such as the RBA will start to cut official rates once it’s apparent inflation is under control.