Our Scans · (FS.5.00) Equity Markets · Weekly Summary

• Valuation Dynamics: The underperformance of UK equities relative to other developed markets may result in more attractive valuation opportunities for distressed businesses in the UK. Administration List
• The investment firm predicts significant growth in the Indian equity markets, expecting dollar-term returns of up to 10% over the next five to seven years. Forbes
• The yuan fell sharply and Chinese shares skidded, dragging down markets broadly in Asia and dampening an equity rally spurred by a surprise rate cut in Switzerland that had investors wagering on who will ease policy next. The Telegraph
• Despite the equity market's Goldilocks obsession, bond markets are still not as ready to dismiss the threat of a second wave of inflation, as evidenced by the 10 year US treasury yield pushing back towards its 2024 highs once again. Money to the Masses
• As markets further struggle with a 5% + terminal rate (the level at which the Fed is expected to stop raising interest rates), we expect pockets of volatility across equities and fixed income, especially as geopolitical risk remains elevated. First Republic Bank
• Equity markets ended in the red last week, led by US and Asian equities, as sticky inflation readings dampened hopes for early interest rate cuts (in Jun); the MSCI's gauge for global stocks was down 0.5% for the week. Nasser Saidi & Associates
• Strategists are now aligned on interest rate cuts later in 2024 which will be supportive of a recovery in equity markets following a very challenging period. Yahoo Finance
• The African Development Fund will be able to do even more, after the Bank Group governors authorized the Fund to use its equity in the capital markets. TechAfrica News
• US tech equities are expected to benefit from the long-term trends of innovation and disruption, as new technologies emerge and transform various industries and markets. Yahoo Finance
• Within equity markets, an easing risk environment could see the dominant outperformance of US large-cap technology stocks eventually give way to more investor interest in cheaper and long-neglected areas such as emerging markets, small caps, Europe, Japan and even Australia. BetaShares
• Not many would have predicted the rebound in equity markets in the second half of 2023 or the rising prospects of a soft landing for the broader U.S. economy, and 2024 is similarly unpredictable. The Harvard Law School Forum on Corporate Governance
• Consensus estimates still point to year-on-year gains in profits in 2024 and, for now at least, earnings revisions have been positive for US equities, even if they are less so for other markets. ViewPoint English
• While the economic cycle in Australia is 9 to 12 months behind the US, and rate cuts in Australia are expected to lag the US, we expect the equity markets to rally through 2024/25 as investors begin to price anticipated rate cuts and an improved outlook for company earnings. Livewire Markets
• The bull-run in Indian financial markets is likely to continue in 2024 as foreign interest remains robust, with heavy buying expected in both equity and debt markets. The Economic Times
• Following a strong performance the prior month, equity markets gave up most of their gains in August as light volumes along with fears that interest rates could stay 'higher for longer' led to profit-taking, dragging global stocks lower. Zurich Insurance Group
• After the US 10-year treasury yield hit 5% last week, bond markets will be watched closely for any sign of rising yields that could dampen demand for equities. UK Investor Magazine
• The disruption caused by elevated inflation and increased interest rates has affected equity and bond markets on a global scale, putting extra pressure on asset owners to reassess and adjust their strategies. Thinking Ahead Institute
• As markets further struggle with a 5% + terminal rate (the level at which the Fed is expected to stop raising interest rates), we expect pockets of volatility across equities and fixed income, especially as geopolitical risk have escalated. First Republic Bank
• Global equity markets face an upsurge in global oil prices, persistent trouble in the Chinese property sector and the likelihood of fewer interest rate cuts in 2024. Newsroom
• We can expect risk assets (equities, high yield, emerging markets) to continue avoiding major sell-offs if economies, particularly the U.S. and Europe, avoid meaningful recession, defined as significant rises in unemployment. Morgan Stanley
• Higher oil prices might enable Saudi Arabia to obtain more favorable terms for a further selloff of equity in Saudi Aramco on global capital markets. The Soufan Center

Last updated: 23 April 2024