6 October, 2026

Latin America gains ground as a diversifier amid AI, energy uncertainty and policy shifts ahead

Summary

Highlights

Despite rising yields. global equities remained resilient in Q3 supported by strong earnings and favourable economic conditions.
Within emerging markets, Latin America stood out in Q3, confirming its role as diversifier beyond the AI-trade and amid global geopolitical frictions.
EM offers opportunities to diversify across different themes, including energy, technology and structural demand drivers.

Line chart titled “Equity rotation at play” comparing cumulative performance from Jun-26 to Sep-26 for Europe, USA, EM LATAM and EM Asia. Europe and USA move near flat to mildly negative, EM LATAM peaks in August, while EM Asia remains the weakest.

In this edition

Equity markets remained resilient in Q3 despite the headwind from higher interest rates, which led global government bonds to post their worst quarterly loss since the end of 2024. Global equity indices were supported by a strong earnings cycle and favourable economic conditions. Across sectors, technology and energy led, while utilities, industrials, real estate and consumer stocks were in the red.

In emerging markets, Latin America stood out with a positive quarter. The region is supported by attractive valuations and the prospect of an improving policy mix, boosting macro stability and the reform outlook. This could further reinforce the region, which is positively geared to global geopolitical frictions and has a competitive advantage in agricultural and critical commodities.

Key dates

5 Oct

Japan Services & Composite PMI Final, US ISM Services Index, Eurozone Services PMI

7 Oct

Reserve Bank of India policy rate, China Foreign Reserves, Japan Labor Cash Earnings

9 Oct

China Money Supply M2, US University of Michigan Consumer Sentiment

Read the full article on the Amundi Research center

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