Key Highlights for Second Quarter 2024
- Global equities advanced, with performance led by tech-heavy markets, including the United States and emerging Asia.
- Ongoing enthusiasm for artificial intelligence and the technology sector’s outsized contributions to Q1 2024 earnings growth supported the outperformance of large-cap and growth equities.
- Emerging markets outperformed, largely driven by the Chinese equity rally. However, momentum waned in the latter half of Q2 amid ongoing economic and real estate sector weakness.
- The global monetary policy outlook was clouded by stickier-than-expected inflation, although several central banks in Europe initiated rate cuts. Bond markets generally delivered muted performance as investors lowered their outlook for rate cuts.
- Political risks impacted market performance, given largely unexpected election results across several major economies, including the European Union, France, India, and Mexico.