We are pleased to count you among our Market Compass readers. The monthly publication provides interesting insights and suggestions regarding the current market environment.
Explore the latest trends and strategic insights in the June 2024 edition of the “Market Compass.”
This issue provides a comprehensive overview of the shifting dynamics in the global financial landscape, encapsulating major movements from Wall Street to the heart of Europe.
Delve into the current state of equity markets, where resilience has been the theme despite a brief correction in April. High-flying sectors such as technology have significantly influenced market performance, with notable companies like Nvidia, Amazon, Meta Platforms, Alphabet, and Microsoft driving the S&P 500 to substantial gains. European markets have also shown strength, with the EuroStoxx 50 and the Swiss SMI index posting notable increases.
In our earnings season coverage, discover how U.S. technology giants have outstripped expectations, propelling the S&P 500 and Nasdaq to new heights. Nvidia, with an astonishing 461% growth in Q1 2024, along with significant contributions from Amazon (+216%), Meta Platforms (+78%), Alphabet (+53%), and Microsoft (+20%), played pivotal roles in sustaining the U.S. equity markets. In contrast, the Eurozone displayed solid growth, with its manufacturing sector experiencing a noticeable upturn.
This edition also highlights the renewed geopolitical tensions between the U.S. and China. President Biden’s announcement of new import tariffs on Chinese goods has sparked concerns, although the immediate economic impact is deemed minimal. This evolving trade conflict, however, adds an element of uncertainty to the market outlook.
Strategic positioning updates reflect adjustments in asset allocations amidst evolving market conditions. The adage “Sell in May and go away” did not hold true this year, with equity markets demonstrating resilience. Our analysis explains why maintaining equity exposure was beneficial and how milder inflation figures in the U.S. and economic revival in the Eurozone contributed to this scenario.
Stay informed with our detailed market outlook, which anticipates a phase of consolidation in equity markets through the summer. We expect balanced risk/return scenarios with potential challenges from persistent inflation and interest rates. The U.S. Federal Reserve’s decision to maintain the key interest rate at 5.25%, along with the European Central Bank’s anticipated rate cuts, are crucial factors to watch.
This edition also explores the attractiveness of emerging markets, particularly Vietnam and India, which have significantly lower production costs than China. These countries are becoming vital strategic partners for major international companies, presenting attractive investment opportunities.
Download the full PDF of our June 2024 Market Compass for an in-depth analysis and forward-looking guidance on navigating these turbulent times in financial markets.
Do not hesitate to contact us with any questions about the topics discussed. We are happy to assist you with our expertise.
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