September saw another setback for global markets, as European growth concerns spilled over to the U.S. For the second time this quarter, investors trimmed exposure to stocks and corporate credit in favor of cash and Treasuries. This was bullish for the U.S. dollar, which remains the strongest performing currency this year. This U.S. dollar strength combined with energy supply increases from the U.S. and concerns over International growth have put significant downward pressures on many commodities. U.S. large-cap equities held up better than International shares, while Emerging Market and small cap stocks suffered the largest losses.
- Alibaba Group Holding (NYSE:BABA), a Chinese diversified e-commerce company, offered public shares for the first time, raising a record $21.8 billion ($68/share) in its initial public offering
- The US dollar index has generated a positive return for 10 consecutive weeks, which is the longest streak in over 40 years; demand for the currency has benefitted from investors seeking higher-quality yields offered by U.S. Treasuries
- WTI crude ended the month $15 below its 2014 high of $108 reached in June; global crude prices have suffered from supply technicals but also a strong U.S. dollar as crude is priced globally in USD
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