• The United States Federal Reserve (US Fed) and the European Central Bank (ECB) announced plans to taper asset purchases
  
• Manufacturing activity slowed further in China
  
• International oil prices declined on-month on uncertain demand outlook
  

The US Fed and ECB finally indicated plans to slow down their rate of bond buying on the back of strengthening economic growth. Monetary policy normalization has been on the cards for a while, and their actions are in line with those of other global central banks that have already initiated rate hikes for the first time since the Covid-19 pandemic took hold, such as those of New Zealand and Chile.

The effects of the pandemic on the global economy, though, are still being analyzed, with reports of global container shortages, caused by containers getting stuck at ports and resultant longer turnaround times, disrupting global trade supplies. This, coupled with rising demand, has pushed freight rates up significantly. The Baltic Dry Index, for example, hit a 10-year high in September, driven by a surge in commodity prices.