The key moment in the global monetary policy cycle finally arrived in September, the US Federal Reserve (Fed) delivering its first interest rate cut of this cycle, the only surprise element being its size at 50bps. Other major central banks, including the European Central Bank (ECB) and Bank of England,
By the end of August, the big correction in markets in late July/early August seemed a distant memory, with markets quickly regaining most of the ground lost in that sudden and very brief risk-off event. Most asset classes and markets ended August in positive territory, with the MSCI World index
On the surface, markets appear to have been uneventful in July, with few sizeable moves over the month - the S&P 500 index was up 1.2%, MSCI World index of developed markets +1.8%, emerging markets +0.3%, and US Treasuries +2.1%. The most notable moves were in currencies, with the yen
In a reversal of the April sell-off, equity and bond markets generally performed well in May. The MSCI World index of developed markets gained 4.5% while US Treasuries returned 1.5% and Global Government bonds 1.0%. The US equity market led the way, +4.9%, with tech dominant. The Nasdaq index returned
The key factors driving markets in the first quarter of the year continued through April. Economic growth has remained resilient, labour markets strong and the earlier falls in inflation have slowed. The long period of high inflation, aggressive monetary tightening and geopolitical uncertainty have not damaged economies as much as
Three critical connected factors drove markets in Q1: economic activity across the developed world surprised on the upside; inflation proved to be more persistent; and labour markets remained tight. The probability of recession has fallen, that of a soft landing increased. As a result, market expectations for cuts in policy
Equity markets continued to surprise on the upside with a gain in February of 4.2% in developed markets (MSCI World index) and 4.8% in emerging markets (MSCI Emerging Markets index). MSCI World has returned 11% so far this year, 23% since the current surge in markets started in late October
Markets began to consolidate in January and returns ended the month in a more mixed fashion, compared to the ‘(almost) everything rally’ seen in Q4 2023. Global developed and US equities both continued their momentum to reach all-time highs, returning 1.2% and 1.7% respectively. Equity markets in Asia continued to
Following a bruising 3 months, equity and bond markets came back with a bang in November, in most cases recovering all the ground lost since July, in an almost unbroken run of gains through the month. The extraordinary shift in risk appetite saw global developed world equities return 9.4% in