Quarter in Review Q1 2024

• Quarter in review
• 08.04.24
• Lenny McLoughlin

Key themes

• Global equity markets continued their rally in the first quarter of 2024, buoyed by the prospect of monetary easing later in the year and continued optimism around artificial intelligence (AI) and its potential to increase corporate profits.
• Global activity data was generally better, with growth forecasts being revised higher. Growth in the US has slowed compared to the robust pace seen in the second half of 2023, but remains strong, while data in the Eurozone showed tentative signs of improvement.
• Meanwhile, both the Federal Reserve (Fed) and the European Central Bank (ECB) suggested that interest rate cuts would likely begin in June.

Markets snapshot

• The MSCI All Country World index was up by 9.6% (10.8% in euros) over the quarter.
• The ICE BofA 5+ Year Euro Government bond index fell by 0.9% as German 10-year yields rose from 2.02% at end-2023 to 2.30% amid a reduction in the magnitude of expected 2024 rate cuts.