Weekly Financial Update - October 12, 2018

Recent weakness in global equity markets accelerated mid-week as the S&P 500 index declined 5.3% over last Wednesday and Thursday. The rapid rise in U.S. Treasury bond yields to multi-year highs was the main trigger behind the decline. Yet several other factors also contributed including more hawkish commentary from Fed officials in recent weeks. Additionally, negative commentary from the management teams of several industrial and material companies in recent days about the adverse effects on corporate margins of rising input and labor costs further spooked investors. Finally weaker global growth forecast from the IMF, and continued trade tensions with China weighed on sentiment.

Read more about last week's finanical developments in our Weekly Financial Update.