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Markets Summary – An Investor’s Digest for 24.10.2023

Today’s market summary is as follows:

The “Magnificent Seven” tech stocks have driven US equity markets to new highs. These tech giants have played a significant role in pushing the MSCI All-Country World index to record gains for the year.

US Treasury Bonds:
US Treasury yields fell from a 16-year high as Bill Ackman ended a bearish bet. The 10-year benchmark borrowing cost briefly climbed above 5% for the first time since 2007 before retreating.

Chinese Equities:
China’s stock market has dropped to pre-pandemic lows. This decline can be attributed to slow economic growth, issues in the property sector, and ongoing geopolitical tensions, which continue to weigh on Chinese shares.

Cryptocurrencies are under renewed scrutiny following alleged links between digital currencies and terrorism, notably after Hamas attacks. Politicians and regulators are increasing their focus on this matter.

Scottish Economy:
Investors suggest that Scotland may face higher borrowing costs relative to the UK due to the small size and limited liquidity of its bonds, often referred to as “kilts.”
Exchange Traded Funds (ETFs):
Despite a bond market rout, investors are showing interest in fixed income ETFs. The relentless rise of yields is attracting new inflows, but this trend has left long-dated bondholders nursing losses.

Others & Analysis:
“Unhedged” discusses active investing and the fund management industry.
“Markets Insight” articles cover the challenges facing the ESG investing framework and potential issues for bond markets.
Journalists analyze why markets remain relatively calm in the face of geopolitical tensions.
An article in “Unhedged” questions whether it is safe to own long bonds again.

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