A look back at markets in Q3, which saw commodities perform strongly amid higher energy prices.
The quarter in summary:
The third quarter was marked by rising inflationary pressure amid renewed conflict in the Middle East which pushed energy prices higher once more. Commodities performed well. Developed market equities gained although emerging market equities fell slightly. Global bond markets experienced challenges with yields moving higher.
Global equities
Global equities gained during the third quarter of 2026, with the advance coming despite a challenging backdrop marked by geopolitical tensions, higher energy prices and rising interest rates.
While US equities continued to contribute significantly to global returns given the market’s weight in the index, the gain was broadly supported by companies that demonstrated an ability to increase earnings despite higher financing costs and uncertain macroeconomic conditions.
Investors’ continued enthusiasm for artificial intelligence, digital infrastructure and other productivity-enhancing technologies also helped support equity valuations across a range of markets and sectors.
A notable development during the quarter was the divergence between bond and equity markets. Equity investors appeared relatively sanguine about the concerns that drove a global bond market sell-off, including persistent inflation, rising fiscal deficits, higher government borrowing and expectations that central banks may need to keep monetary policy restrictive.
The positive return for global equities reflected confidence in an economic backdrop that remained more resilient than many had anticipated. Labour markets generally stayed healthy, corporate earnings continued to exceed expectations in many regions and concerns about an imminent global recession eased.
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