This year has certainly been characterised by immense uncertainty in global markets. Global equities declined over the quarter, with the MSCI All Country World Index falling 1.2% and the S&P 500 declining by 4.3%. The primary reason for the downturn can be ascribed to a valuation multiple de-rating in the United States (US), driven by a confidence shock among global investors.

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.

Global equity and bond markets climbed higher in August predominately supported by relatively dovish monetary policy rhetoric from Fed Chair, Jerome Powell, in his speech at Jackson Hole.

Geopolitics continued to be the central theme across the globe as election risk remained in focus.

Geopolitical tensions have been rife across the globe as election risk took centre stage over the month.

Inflation statistics, particularly in the United States, surprised to the upside over April leading to fewer interest rate cuts being priced in 2024

Some noteworthy central bank activity took place over the month – key among them, the US Federal Reserve (Fed) and the Bank of Japan (BoJ).

The equity market upturn continued over the month as the FTSE All-World Total Return USD Index climbed 4.2%, particularly as the semiconductor industry continued to display an unwavering level of resilience.

It was certainly an eventful start to the year as news from China and the US dominated global market headlines during the month.

The year ended on a strong note with the FTSE All-World Total Return USD Index surging 4.8% in December, while the FTSE World Broad Investment-Grade Bond Index climbed 4.2%.

The month of November was characterised by a sharp rebound in asset prices with the FTSE All-World Total Return USD Index surging +9.2% while the FTSE World Broad Investment-Grade Bond Index climbed +5.2%.

Conflict in the Middle East took centre stage over the month as the Palestinian militant group Hamas initiated an attack on Israel in early October.

The Federal Open Market Committee (FOMC) opted to keep the federal funds target range unchanged at 5.25% - 5.5%.

CPI slowed to 3% year-on-year from 4% the previous month and below Bloomberg consensus expectations of 3.1%.

The Federal Open Market Committee unanimously voted to keep the federal funds target range unchanged at 5% - 5.25%,

To address fragilities in the global banking sector, the Fed has increased the frequency of their central bank swap lines with other major central banks.

Financial conditions loosened at one of the fastest paces on record in January.

Global markets rallied in January with the FTSE All-World Total Return USD Index surging 7.1% while the FTSE World Broad Investment-Grade Bond Index climbed 3.4%.

The Federal Open Market Committee (FOMC) raised the federal funds rate by 50 bps to a range of 4.25% - 4.5%.

On the political front, US midterm elections were held over the month with the Republicans procuring the House of Representatives, while the Democrats retained control of the Senate. Moreover, ex-US president, Donald Trump, announced his candidacy for the 2024 elections.