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Global stocks managed to recover in October from their third-quarter losses.
- The MSCI All Country World Index is set for its biggest
monthly gain in four years, climbing 8%, after giving up 10% in the previous three months. The gains have been boosted by paling
expectations for a U.S. rate increase before the year-end, while China announced fresh stimulus, including the sixth interest rate cut in 12 months.
- Asian stocks are heading for the biggest monthly rise in over six years.
- European stocks are on track to match the MSCI Asia Pacific Index, with the Stoxx Europe 600 Index on pace for its best month since July 2009, almost recovering its third-quarter drop.
- Germany's DAX gauge is Europe's best performing stock market in October. In the world, it's only been beaten by primary indexes in Jamaica and
Argentina, which have risen 36% and 24%, respectively. The DAX is still below its April record. There has been a reverse for German stocks, which dropped 12% in
the third quarter, dampened by the Volkswagen emissions scandal.
After slumping as much as 53% July though September, the German automaker's
preferred shares recovered 11% in October.
- Japan's Nikkei 225 Index had its best month in over two years, gaining nearly 10%. Almost a year to the day from when the central bank unveiled record stimulus, it decided not to add more although it won't reach its 2% inflation target. That target has been pressed back to the six months through March 2017, from the prior half-year period. Economists had been divided before today's announcement on if more stimulus would be unveiled. Japanese stocks rose after the Nikkei newspaper reported the authorities may launch extra fiscal stimulus if it is necessary for the economy.
- The Sierra Leone leone was the only currency to perform better than the Indonesian rupiah in October, according to data compiled by Bloomberg which monitors 156 world currencies. The rupiah rebounded from an 8.6% third-quarter plunge, the heaviest in two years. Behind its
resurgence lay lower prospects for higher U.S. interest rates and a
stabilizing Chinese economy. As markets now consider the December hike quite possible and a Chinese-induced currency war looming, analysts don't think the rupiah's rally will be long-lived.
- The Swedish krona appeared to be the world's worst performing major currency in October.
