Pressure valve against stress on the market

In October, global equity markets, almost without exception, sold off sharply, triggered by a toxic combination of rising interest rates, trade war and the first signs of a fall-off in the momentum of corporate profits, particularly in the US. Thus, technology names and other cyclicals were especially vulnerable. However, it was striking how quickly positive counterbalances sprang into action: there was a reversal in the rising trend in interest rates, and yields on long-dated sovereign bonds fell again significantly.