The first half of 2024 has been another whirlwind in global markets, marked by the relentless march of the megacaps, sloth-like central bank pivots, political palpitations aplenty, and the return of M&A.
Even if the expected worldwide interest-rate-cutting frenzy did not happen, the market valuation of Nvidia and the other members of the Magnificent 7 increased by an additional $3.6 trillion.
Since January, MSCI's 47-country global equities index has gained a robust 11%. Excellent, definitely, but not quite as impressive as Team Tech's 30% jump or Nvidia's genuinely astounding 150% rise in processing power.
"Nvidia alone has contributed thirty percent of the S&P's returns this year," stated Chris Metcalfe, chief investment officer at IBOSS Asset Management, pointing out that the company was now the most expensive stock on the most expensive market globally.
Milestones are not limited to the equity markets.
The yen's decline to a 38-year low versus the dollar (.DXY) has created a fresh trading opportunity in the currency markets. Chocolate saw one of its greatest runs ever, while French bond risk surged to a level not seen since the euro crisis as a result of French President Emmanuel Macron calling early legislative elections on Sunday following his country's crushing defeat at the hands of the extreme right in this month's EU elections.
In any case, government bonds have been struggling. Forecasts of a wave of rate cuts have proven to be more of a trickle in some areas of Europe and developing economies than a flood, at least not yet in the US.
Anyone who owned a portfolio of benchmark bonds has thus seen a 1.5% loss on their investment.
Nadege Dufosse, head of multi-asset at Candriam, stated, "At the end of last year, the markets expected seven (U.S.) rate cuts and now they are expecting just one or two." "That has been the big driver and explains the (poor) performance."
Following the collapse of an early rise, the Dow finished the day down about tenth of a percent, the S&P 500 down four tenths, and the Nasdaq down seven tenths of a percent.
The uncertainty surrounding the U.S. election in November has increased significantly due to U.S. President Joe Biden's unsteady performance in his most recent TV debate versus Donald Trump.
In addition, Britain holds a general election on July 4. While this will almost probably be the first change of government in 14 years, market fireworks are not anticipated.
Georgina Hamilton, fund manager at Polar Capital, clarified that this was because the two front-runners for the UK leadership are rather moderate, in contrast to those running in France and the US.
"Having had quite a lot of turmoil in recent years ... you can't underestimate that calmer political backdrop," she said.
The main story in commodities has been the over 85% increase in cocoa prices owing to shortages; this is already the commodity's second-biggest yearly jump ever, which is undoubtedly bad news for chocolate lovers.
Just about $2,450 per ounce was the record high for gold last month. While bitcoin surged beyond $70,000 and hit a slew of new highs after U.S. watchdogs approved exchange-traded funds, oil is up a healthy 12%.
Global M&A activity has increased in value by 5% over the previous year.
This is mostly due to two $35 billion mergers, wherein rival Ansys was acquired by chip designer Synopsys and credit card company Capital One acquired Discover Financial. However, much more might have been achieved if BHP's compelling $49 billion acquisition of Anglo American had been successful.
Away from the usual path, bonds in Ecuador have gained 46% despite persistent financial worries, and bonds in Argentina have increased 32% thanks to the new president, Javier Milei, who wields a chainsaw.
Veteran of emerging markets Kevin Daly of Aberdeen said that there has been a "distressed to impress" tendency, with bonds of collapsed nations like Sri Lanka, Ghana, and Zambia all rising between 16% and 23% as their protracted debt restructurings are coming to a close.
Still, there have been many ups and downs in developing markets.
For the tenth consecutive quarter, Chinese real estate equities have declined (.CSI000952), opens new tab. Nigeria's and Egypt's currencies have plummeted by 42% and 36%, respectively, due to devaluations, while Mexico's peso has lost around 8% of its value this month as concerns over the country's future direction have been raised by the election's overwhelming outcome.
(Source:www.theprint.in)
Even if the expected worldwide interest-rate-cutting frenzy did not happen, the market valuation of Nvidia and the other members of the Magnificent 7 increased by an additional $3.6 trillion.
Since January, MSCI's 47-country global equities index has gained a robust 11%. Excellent, definitely, but not quite as impressive as Team Tech's 30% jump or Nvidia's genuinely astounding 150% rise in processing power.
"Nvidia alone has contributed thirty percent of the S&P's returns this year," stated Chris Metcalfe, chief investment officer at IBOSS Asset Management, pointing out that the company was now the most expensive stock on the most expensive market globally.
Milestones are not limited to the equity markets.
The yen's decline to a 38-year low versus the dollar (.DXY) has created a fresh trading opportunity in the currency markets. Chocolate saw one of its greatest runs ever, while French bond risk surged to a level not seen since the euro crisis as a result of French President Emmanuel Macron calling early legislative elections on Sunday following his country's crushing defeat at the hands of the extreme right in this month's EU elections.
In any case, government bonds have been struggling. Forecasts of a wave of rate cuts have proven to be more of a trickle in some areas of Europe and developing economies than a flood, at least not yet in the US.
Anyone who owned a portfolio of benchmark bonds has thus seen a 1.5% loss on their investment.
Nadege Dufosse, head of multi-asset at Candriam, stated, "At the end of last year, the markets expected seven (U.S.) rate cuts and now they are expecting just one or two." "That has been the big driver and explains the (poor) performance."
Following the collapse of an early rise, the Dow finished the day down about tenth of a percent, the S&P 500 down four tenths, and the Nasdaq down seven tenths of a percent.
The uncertainty surrounding the U.S. election in November has increased significantly due to U.S. President Joe Biden's unsteady performance in his most recent TV debate versus Donald Trump.
In addition, Britain holds a general election on July 4. While this will almost probably be the first change of government in 14 years, market fireworks are not anticipated.
Georgina Hamilton, fund manager at Polar Capital, clarified that this was because the two front-runners for the UK leadership are rather moderate, in contrast to those running in France and the US.
"Having had quite a lot of turmoil in recent years ... you can't underestimate that calmer political backdrop," she said.
The main story in commodities has been the over 85% increase in cocoa prices owing to shortages; this is already the commodity's second-biggest yearly jump ever, which is undoubtedly bad news for chocolate lovers.
Just about $2,450 per ounce was the record high for gold last month. While bitcoin surged beyond $70,000 and hit a slew of new highs after U.S. watchdogs approved exchange-traded funds, oil is up a healthy 12%.
Global M&A activity has increased in value by 5% over the previous year.
This is mostly due to two $35 billion mergers, wherein rival Ansys was acquired by chip designer Synopsys and credit card company Capital One acquired Discover Financial. However, much more might have been achieved if BHP's compelling $49 billion acquisition of Anglo American had been successful.
Away from the usual path, bonds in Ecuador have gained 46% despite persistent financial worries, and bonds in Argentina have increased 32% thanks to the new president, Javier Milei, who wields a chainsaw.
Veteran of emerging markets Kevin Daly of Aberdeen said that there has been a "distressed to impress" tendency, with bonds of collapsed nations like Sri Lanka, Ghana, and Zambia all rising between 16% and 23% as their protracted debt restructurings are coming to a close.
Still, there have been many ups and downs in developing markets.
For the tenth consecutive quarter, Chinese real estate equities have declined (.CSI000952), opens new tab. Nigeria's and Egypt's currencies have plummeted by 42% and 36%, respectively, due to devaluations, while Mexico's peso has lost around 8% of its value this month as concerns over the country's future direction have been raised by the election's overwhelming outcome.
(Source:www.theprint.in)
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