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Capital IdeasTM

Investment insights from Capital Group

Categories
Equity
World markets review - Third quarter 2022

Global stocks declined for a third consecutive quarter, pressured by high inflation, rising interest rates and recession fears in many countries. Following a robust summer rally, stocks resumed a sharp selloff in mid-August as inflation soared and central banks around the world reconfirmed their commitment to tighten monetary policy.


All sectors of the MSCI All Country World Index lost ground, led by a steep drop among communication services stocks. The rate-sensitive real estate and utilities sectors also fell sharply. Energy and consumer discretionary stocks posted relatively better returns, though both sectors slipped during the quarter. A strong U.S. dollar put added pressure on international and emerging markets equities. 



Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.

Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.