Select Monthly View – October 2024
Strong finish to September quarter
The global central bank interest rate easing cycle gathered pace over September, resulting in a continuation of strong returns from fixed income and global share markets.
Key themes were:
- Global equity markets gained late in the month on lower interest rates, with the US S&P 500 index hitting its 42nd record high for the year.
- The Magnificent 7 (Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla) as a group reversed July’s decline.
- The Chinese share market surged (+21%) following the release of measures to stimulate the economy.
- New Zealand’s share market was flat as it digested corporate earnings announcements.
- Australian equities benefitted from higher commodity prices on the back of the Chinese economic stimulus package.
- The relative attractiveness of domestic bonds has declined given the dramatic decline in longer-term interest rates over the last three months.
- Global bonds continue to offer stability of income and the potential for capital gains from further reductions in interest rates.
- The US economy appears to be on track for a soft landing. On a longer-term view, a reduction in interest rates will be positive for global share markets.
The current environment remains constructive for both fixed income and equity markets. Please contact us at Invest Link to discuss how a well-diversified portfolio can help you achieve your goals.
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