Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Senior Investment Editor
In the United States, the S&P 500 rose 2.3% in August, rebounding after a quieter July. The U.S. market showed resilience as investors adjusted towards expected rate cuts and the US election as a constant curveball. European equities gained 1.4%. Stabilising energy prices and confidence in the European Central Bank’s inflation strategy helped boost market sentiment. Asian markets continued their steady rise with a 1.6% increase, driven by strong corporate earnings and supportive monetary policies. Japan, in particular, attracted investors seeking growth opportunities. Emerging markets posted a 1.4% gain, outperforming July. Despite challenges in China, other emerging economies showed resilience, drawing investor interest.
Global equities are measured using the MSCI World Index. Equity regions are measured using the S&P 500 (US) and the MSCI indices Europe, AC Asia Pacific, and EM respectively. Equity sectors are measured using the MSCI World/Sector indices, e.g., MSCI World/Energy. Bonds are measured using the USD-hedged Bloomberg Aggregate Total Return indices for total, sovereign, and corporate respectively.