June 2024 Market Update

Overview

Markets rose in May with UK investors seeing a 1.2% return in Sterling amid expectations that rate cuts are approaching, while the global economy remained in reasonable shape. Stocks were led by US technology shares where strong Nvidia results strengthened optimism for an AI boom, with several related names rallying.

Emerging markets performance remained mixed. India PM Narendra Modi is set to retain power following the ‘world’s biggest election’, while data from China continues to indicate an economy under pressure from an oversupply of housing. Energy prices fell with an OPEC report pointing to production increases in the coming months despite prices remaining below the $100-a-barrel target.

Inflation in the US experienced a decline after a brief resurgence, enabling bond yields to decrease over the past month. The US 10-year Treasury yield dropped by 0.19% compared to the previous month. However, this yield remains 0.85% higher than the figure from a year ago and 3.8% above the lows observed in 2020 and 2021. The ongoing restrictive monetary policy continues to impact the economy as its effects trickle down.

Full update below…