Market Overview : April 2024

A busy first quarter of optimism · 15 avril 2024

March confirmed a robust start to the year for growth assets. Global stocks returned over 7.8% in USD terms, bringing returns close to 20% for the past 12 months. This spectacular performance was generated as expectations of interest rate cuts from US and European central banks dwindled. Despite higher rates for longer, equity markets were driven by companies benefiting or which could benefit from the rise of artificial intelligence. In March, more cyclical sectors such as energy or materials as well as smaller market capitalizations also contributed to the increase. This rebound allowed European indices to match the performance of American markets during the first three months. Regionally, Japan was one of the best performing markets of the quarter although its central bank began to normalize its monetary policy. This first interest rate increase in 17 years is historic. For several decades, Japan has distinguished itself by an unconventional monetary policy combining negative interest rates with massive asset purchases. Despite this change in direction, the general stance of monetary policy should remain accommodative.

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Market Overview - April 2024 Survol des marchés - Avril 2024