Q3 Recap: Growth Keeps the Crown

Core Insights - Growth themes have regained market leadership in Q3 2025, particularly in China and the US, while European markets have underperformed [1][3][7] - Strong corporate earnings are driving the performance of growth sectors, while value sectors are lagging despite an improving macro environment [1][3][5] US Market Performance - US sectors show that growth continues to dominate, with technology, communication services, and consumer discretionary sectors outperforming the index [3][7] - Defensive sectors, particularly consumer staples, have posted negative returns due to previous strong performance and ongoing macro headwinds like inflation [5][7] International Market Performance - Chinese equities have led international markets, benefiting from a technology-heavy index, although caution is advised due to geopolitical risks [6][8] - Canadian equities have also performed well, driven by strong precious metal prices, despite a weakening Canadian dollar [9] Currency Trends - The US dollar has stabilized against most currencies, with notable exceptions like the Chinese Yuan, which did not participate in the recent rally [10] Future Outlook - Earnings remain a key catalyst for market performance, with expectations that value equities may gain traction in the coming quarters due to macroeconomic conditions [11][12] - Despite the potential for a value rotation, growth equities currently exhibit stronger earnings growth, making them more attractive in the short term [12]