DWS KGaA Investor Relations Media Career Belgium Insights Capabilities Solutions Service Profile Search Home » Insights » CIO View » Investment Traffic Lights » Investment Traffic Lights Nov 03, 2021 Global Investment Traffic Lights Our market analysis and positioning Stefan Kreuzkamp Chief Investment Officer and Head of Investment Division 7 min to read The S&P 500 posted a total return of 7.0%, its best month so far this year. And with European markets also doing well, the MSCI AC World Index also enjoyed its strongest month this year. The S&P 500 broke the 4,600 mark in October and ended the month at record levels, while the reached a new high on the first of November. The Dax, on the other hand, closed the month slightly below its August high. Germany, as an exporting nation, is suffering particularly badly from the slowdown in Chinese economic growth, energy and raw-material price increases and supply-chain bottlenecks. The stock markets might be hitting records but the challenges facing the global economy also increased in October. Supply shortages and rising prices are the biggest problems. Whether oil, gas, electricity, food or construction materials, many prices reached new or at least long-standing record highs. The price of ammonia, fundamental for fertilizer, has quadrupled in the past twelve months and the Brent oil price has doubled since the beginning of this year.[1] Overall, industrial metals and agricultural commodities are trading at or near their record price highs. This has generated an rate of 4.1% in the for October, the highest since June 2008. In Spain inflation has gone as high as 5.5%. In the U.S. the inflation rate was 5.4% in September, which has only been exceeded once over the past 30 years. Except for British and very long-termed bonds, there was no money to be made in government bonds in October. As a result of lower-than-expected issuance plans. Inflation became October's dominant topic for central banks, whose meetings had originally been expected to be fairly uneventful. Both the and the were surprised by the rapid rise in inflation expectations, to a 13-year high in the U.S. and an 8-year high in Germany, as well as by the steps being taken by other central banks. The has been preparing investors for a tighter for some weeks, after inflation expectations in the UK climbed to the highest since 1997, excluding a brief breakout in 2008. The market is now pricing in a 0.15% BoE rate hike at the November 4 meeting. The confirmed its own policy tightening at its November 2 meeting: it had already, some weeks before, abandoned its fixing of the interest rate of its 2024 maturity bond at 10 basis points. The yield on two-year Australian had risen abruptly from 10 to 70 basis points in the last week of October. Canada's monetary watchdogs, in turn, ended their bond purchases unexpectedly in October and are targeting an earlier-than-expected increase in interest rates. 1 More topics Nov 22, 2021 ESG Sustainability becomes part of investment advice | ESG - mandatory or optional? Inquiring about sustainability preferences will become mandatory in investment advisory. Nov 19, 2021 CIO VIEW QUARTERLY NEWS- LETTER 1. Bloomberg Finance L.P. as of 10/31/21 2. As a result of lower-than-expected issuance plans. 3. Bloomberg Finance L.P. as of 10/31/21 4. Spread over German Bunds 5. Relative to the MSCI AC World Index 6. S&P 500 7. Stoxx Europe 600 8. EuroStoxx 50 9. Dax 10. Swiss Market Index 11. FTSE 100 12. MSCI Emerging Markets Index 13. MSCI AC Asia ex Japan Index 14. MSCI Japan Index 15. MSCI AC World Consumer Stables Index 16. MSCI AC World Health Care Index 17. MSCI AC World Communication Services Index 18. MSCI AC World Utilities Index 19. MSCI AC World Consumer Discretionary Index 20. MSCI AC World Energy Index 21. MSCI AC World Financials Index 22. MSCI AC World Industrials Index 23. MSCI AC World Information Technology Index 24. MSCI AC World Materials Index 25. MSCI AC World Real Estate Index 26. Russel 2000 Index relative to the S&P 500 27. Stoxx Europe Small 200 relative to the Stoxx Europe 600 28. Relative to the Bloomberg Commodity Index 29. Long-term investments Quick Access DWS KGaA CIO View Facts & Figures Slavery and Human Trafficking Statement (PDF) Engagement Policy (PDF) Information on sustainability Copyright © 2021 DWS DWS Investment GmbH as of 11/2/21 - 082325_8 (11/2021) (11/23) Cookies Policy We use cookies and similar technologies that are essential to operate our websites. With your consent, we will use cookies for performance analysis of our websites. This enables us to detect and fix errors and usability issues as soon as possible and to constantly improve our website. 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