Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Senior Investment Editor
Summary: As we conclude 2023, markets finish strong especially within stocks and bonds. Oil, broad based commodities and the US dollar pull down the overall celebratory vibe.
The expectation of easing financial conditions also adds to the performance across the globe. All regions climb between 3.6 and 4.4 percent with US and Asia being the high risers and Europe being in the bottom.
In terms of sectors, Industrials and Materials are the best performing, but all sectors apart from Energy post strong results increasing between 2.4 and 7.5 percent. The broad-based positive performance is indicative of the positive sentiment in the market during December.
That sentiment also flowed into bonds. Both the overall global bond performance as well as sovereign bonds and corporate bonds respectively posted green results. Sovereigns are the worst performing relatively returning 2.94% with corporates returning 3.81%.