Milliman Market Monitor London - 31 October 2017

European equity carried forward September’s positive momentum to reach new highs in October. The Eurostoxx 50 index is at the peak for 2017 after returning over 2% for the month. The equity markets made positive gains in major markets across the globe in October. Corporate and government bond values increased in October. Realised volatility on the major equity indices remained near historically low levels in October as the global equity markets ratcheted higher. Implied volatilities also remained largely unchanged in the period, keeping close to their own historically low levels. Consequently, the volatility risk premiums have changed marginally during the month.