Equities

In the US the S&P 500 touched a new high in response to the big miss on non-farm payrolls data, while the Nasdaq recorded its biggest loss in two months. European markets were broadly higher led by Spain and the UK. In Japan equity markets shrugged off further Covid-19 containment measures, while in China consumer stocks outperformed following the Labour Day holiday.

Bonds

US Treasury markets sold off on Janet Yellen’s interest rate comments, but rallied towards the end of the week on the subdued jobs data. Investment grade credit spreads widened as equities dipped, before narrowing later in the week. High yield markets were fairly stable, while emerging market debt returns (Hard Currency) were in line with global fixed income.

Currencies

The dollar weakened after brief hopes of rising interest rates were dispelled. Sterling gained against all majors, while the euro made ground against both the dollar and the yen.

Commodities

Copper and iron ore prices continued their recent rally, on forecasts of a strong rebound in demand. Oil price gains were more modest, restrained by the pandemic situation in India.

Responsible investing

The EU carbon price, sometimes seen as the cost of polluting, moved above €50 a tonne or more than double pre-pandemic levels.