Global equity markets finished 2024 relatively subdued, with the MSCI World Index returning -0.2% in U.S. dollars (USD) and +1.9% in local currency in Q4. Notwithstanding the mild Q4 returns, the index had another remarkable year, delivering +19% in USD and +21% in local currency; a cumulative two-year gain of nearly +50% in USD. U.S. election sentiment drove performance in Q4, with the highly cyclical, growth-tilted sectors leading.

The biggest news for the final quarter of 2024 was Donald Trump winning the US election. Global markets largely tracked sideways over the quarter, however, the election of President Trump was received positively by the US stock market and the S&P 500 gained 2.4% over the period.

In September we saw a much-anticipated cut in the US Federal Funds rate of 50bps with Federal Reserve Committee minutes mentioning confidence that inflation is moving sustainably towards the 2% target. Outside of the US, China announced a slew of prospective stimulus measures to revitalise their economy.

In September there was a much-anticipated cut in the US Federal Funds rate of 50bps with Federal Reserve Committee minutes mentioning confidence that inflation is moving sustainably towards the 2% target. Outside of the US, China announced a slew of prospective stimulus measures to revitalise their economy.

In September there was a much-anticipated cut in the US Federal Funds rate of 50bps with Federal Reserve Committee minutes mentioning confidence that inflation is moving sustainably towards the 2% target. Outside of the US, China announced a slew of prospective stimulus measures to revitalise their economy.

In September we saw a much-anticipated cut in the US Federal Funds rate of 50bps with Federal Reserve Committee minutes mentioning confidence that inflation is moving sustainably towards the 2% target. Outside of the US, China announced a slew of prospective stimulus measures to revitalise their economy.

In September we saw a much-anticipated cut in the US Federal Funds rate of 50bps with Federal Reserve Committee minutes mentioning confidence that inflation is moving sustainably towards the 2% target. Outside of the US, China announced a slew of prospective stimulus measures to revitalise their economy.

During September, volatility was particularly prevalent at the beginning of the month - in line with During September, volatility was particularly prevalent at the beginning of the month - in line with historical seasonality. historical seasonality.

August was a tale of two halves, starting off on a negative note with the Bloomberg World Index dropping 6.5% in the first few days. One of the catalysts for the negative sentiment was a surprise Bank of Japan (BoJ )rate hike. This caused an unwind of the YEN carry trade. This had been predicated on a weak Yen and relatively low Japanese interest rates and had supported large amounts of Japanese capital moving offshore into foreign equity markets.

August was a tale of two halves, starting off on a negative note with the Bloomberg World Index dropping 6.5% in the first few days. One of the catalysts for the negative sentiment was a surprise Bank of Japan (BoJ) rate hike. This caused an unwind of the YEN carry trade. This had been predicated on a weak Yen and relatively low Japanese interest rates and had supported large amounts of Japanese capital moving offshore into foreign equity markets.