Key Highlights for Fourth Quarter 2024
- Global equities advanced in Q4 as performance diverged among regions. US equities drove gains on strong economic data and as investors priced in potential policy implications of Donald Trump and the Republican Party’s election win in November.
- Developed markets ex US equities were flat and emerging markets retreated as investors digested underwhelming economic data and fresh uncertainty in the trade outlook due to potential tariffs imposed by the incoming US administration.
- Fixed income assets declined as interest rates backed up to their highest levels since mid-2024. Corporate bonds held up better than government equivalents as credit spreads narrowed.
- Real assets mostly declined on higher interest rates and the shifting outlook for trade.
- The US dollar surged, leading global ex US stocks to underperform by a wider margin in USD terms.