Despite inflationary headwinds, US indices reached all-time highs in October, supported by strong corporate earnings for the third quarter.

September was an eventful and choppy month for markets. Inflation has been an important topic this month, with central banks communicating increasingly hawkish signals.

Equity markets continued their upward trajectory this month, with the S&P 500 reaching record highs. The Jackson Hole symposium was a focus for investors this month, with a likely December 2021 taper start.

Over July, financial markets have been pulled both ways; from market tailwinds such as a strong Q2 earnings season, and from market headwinds such as Beijing’s regulatory crackdown.

Global markets have had a positive first half to the year, with US equities reaching record highs, and European equities posting strong gains. Inflation is the price we are paying for this market strength, with the Fed’s policy outlook remaining crucial for markets.