Quarterly Investment Update September 2024

Quarterly Market Commentary September 2024

Welcome to the September 2024 issue of our Quarterly Market Commentary.

Looking back over the last quarter, global equities faced a notable downturn in August, with the US economy at the centre of investor scrutiny. Mixed economic indicators, inflationary pressures, and interest rate fluctuations contributed to widespread market anxiety. Concerns about a potential US economic slowdown prompted sell-offs across various sectors as investors reassessed their positions amidst high valuations and potential corrections in stock prices.

UK equities experienced a turbulent August, initially buoyed by a Labour Party election victory that sparked optimism for economic recovery. However, this optimism was short-lived as broader economic concerns and geopolitical tensions significantly declined the FTSE 100. Despite a promising start, the UK market faced challenges due to adverse economic data and diminishing investor confidence.

The Eurozone displayed resilience in July, with gains led by the healthcare, utilities, and real estate sectors. However, August shifted sentiment as global market downturns and economic apprehensions impacted the region. Political uncertainties, such as France’s inconclusive parliamentary elections, added to the Eurozone’s economic challenges and growth prospects.

In the US, August’s downturn overshadowed July’s initial market gains. Despite the Federal Reserve’s potential rate cut and improved inflation data, concerns about a recession and political shifts, including President Biden’s withdrawal from the presidential race, affected market dynamics. Investors recalibrated their expectations in response to these complex economic and political factors.

Japan’s market experienced significant volatility, with the yen’s appreciation impacting exporters and equity sectors. The Bank of Japan’s rate hike supported the yen, while small-cap and value investments demonstrated resilience. Economic concerns contributed to further market fluctuations in August, highlighting the need for strategic diversification in investment portfolios.

Emerging markets showed resilience in July, benefiting from a weaker dollar and potential US rate cuts. However, challenges in China and Taiwan, along with currency depreciation in Turkey and interest rate delays in Poland, tempered gains. By August, increased volatility and geopolitical uncertainties reshaped the emerging market landscape, demanding adaptable investment strategies. Meanwhile, global bonds enjoyed a positive July, driven by dropping yields and central bank actions, though they faced renewed challenges in August due to economic concerns.

For the full bulletin, please click the download button below.

Important Notes

The summary of recent economic and investment markets news and any comments in relation to the outlook for such are not intended to take the place of individual independent investment advice. This document contains a generalised commentary only and individuals should not take investment decisions based solely on its content. We strongly recommend seeking individual independent financial advice before making any investment decision.  The views expressed in this document may differ from advice provided on an individual basis.

Past performance is not a guide to the future. The value of investments and the income from them can and does go down as well as up. Whilst investments are designed to return more than the sum invested, in the form of capital appreciation, income or a combination of the two, it is important to note that even over long investment time frames it is possible that an investor may get back less than originally invested.

DOWNLOAD