Equities

Global stock markets fell at the beginning of the week, on fears of contagion from the Evergrande debt crisis. US markets recovered to finish the week slightly higher, as did European markets. But most Asian and emerging markets struggled to recoup their losses, and finished the week slightly lower.

Bonds

The 10-year US Treasury yield rose to its highest level since March, as Federal Reserve Chairman Jay Powell hinted that tapering of the central bank’s bond-buying programme could be completed by the middle of 2022. European government bond yields were also higher over the week. And in corporate bond markets, investment grade and high yield bond yields were also higher in Europe and the US.

Currencies

The US dollar rose against sterling and the yen, but was flat versus the euro last week. The euro was stronger against sterling and the Japanese yen, while sterling lost value against the dollar and euro. 

Commodities

It was another positive week for oil, as OPEC forecast strong demand in 2022. The price of Brent Crude rose 3.7% to $78.10 per barrel. Gold was slightly weaker, falling 0.2% to finish at $1,750 per ounce.

Responsible investing

The UK’s first green bond sale attracted strong demand, with investors placing £100 billion of bids for the £10 billion of 12-year government debt.