Political uncertainties over the past quarter remain unresolved, such as the potential conflict between the U.S. and Iran, trade dispute between the U.S. and China, and the Brexit negotiations, reports KPMG in its 10th edition of the International Valuation Newsletter, published quarterly. As a result of these developments and low inflation rates, central banks around the world continued to cut interest rates over the past three months. Highlights of the report’s market update are:

• Major stock market performances: Emerging markets significantly decline in Q3;
• EURO STOXX 600 sector multiples: IT dominates Q3 but loses significantly on a quarterly basis;
• Current risk-free rates for major currencies: Interest rates continue to decline; and
• Recent country risk premiums and inflation forecasts for the BRIC countries: Both short-term growth expectations and risk premium for China have increased.

The report also focuses on the importance of “achieving consistency in currency conversions” in company valuation.