Market Outlook Autumn 2024
- philmather5
- Oct 3, 2024
- 2 min read
Global stocks experienced volatility this quarter as they weathered declines in US tech and Japanese equities. However, most regions ended the quarter with small gains following central bank rate cuts. Canada outperformed other developed markets, while the US lagged due to weakening economic activity and a slump in major tech stocks. In addition, a slowdown in the job market caused the Federal Reserve to switch its attention from inflation to promoting growth as it cut interest rates by 0.5%. Meanwhile, China, the world’s second largest economy, remains mired in problems. The People’s Bank of China finally announced a wave of stimulus in response to low consumer demand, deflation, declining house prices and distressed debt within its economy.
The Eurozone experienced minimal growth due to reduced Chinese demand. UK economic growth slowed, but the FTSE has outperformed other developed markets although lower commodity prices towards the end of the period limited the gains. Japanese equities surprised investors with a strong rally in the first half of the year, but a sharp sell-off in early August rocked markets around the world as weaker US economic data, strengthening Japanese yen and fragile investor confidence triggered a correction. However, most of these losses were recouped quickly, and the US and Indian markets approached the end of the quarter at all-time highs. Central bank rate cuts and the potential for further reductions led to gains in long-dated bonds, and fixed-income funds performed admirably during the quarter, in turn taking the edge the weakness in global equity markets.
This post contains information produced by FE Investments and opinions based on current market conditions, which we feel are relevant at the current time. This document has been prepared for general information only and is not guaranteed to be complete or accurate. It does not contain all of the information which an investor may require in order to make an investment decision.
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