Summary
- Unlike at the end of 2023, global equity and bond markets have diverged since the beginning of 2024.
- While US economic growth remains strong, the pace of disinflation has become more gradual.
- This combination of stronger-than-forecasted growth and inflation has led markets to revise their Fed rate cut expectations.
Actionable ideas
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In credit favour quality
Strong economic data supports credit markets, but with the Fed on hold, we would favour higher-quality companies less exposed to high costs of refinancing. -
Multi-Asset to balance opportunities and risks
A multi-asset approach could help to exploit equity opportunities, while also potentially benefiting from the appeal of bonds during a phase of economic slowdown.
Key Dates
5 March Euro area final PMI |
7 March ECB Monetary Policy Committee |
8 March US Employment Situation Report |