Global equities continued to advance over Q3, progressing into positive year-to-date territory as economic data continued to rebound after an easing of social distancing measures.
Stocks retreated with other risk assets in September, however, as uncertainty rose ahead of the US presidential election and as Covid cases started to rise again, especially in Europe. Despite a pullback during the September sell-off, US equities were once again leaders on a regional basis. They were joined by emerging markets stocks which also enjoyed a period of outperformance, helped by a weaker dollar and a strong recovery in China. In FX markets, sterling rallied with the euro, although gains in the former were pared by Brexit uncertainty.