August 2024

• Global markets experienced increased volatility in August as investors reacted to weaker economic data, shifting central bank expectations and heightened concerns regarding slowing global growth.
• Technology and artificial intelligence-related sectors remained resilient overall despite periods of sharp market swings.
• Bond yields declined as investors increasingly anticipated interest rate cuts from major central banks.
• Economic data in several developed economies showed signs of moderating consumer and manufacturing activity.
• Chinese growth concerns continued weighing on broader Asian and emerging market sentiment.
• Commodity prices weakened modestly due to softer demand expectations.

Asia (ex. Japan)

Asian markets outside Japan delivered mixed performance during August as investors balanced continued semiconductor demand against persistent concerns regarding Chinese economic weakness and fragile property markets.

Taiwan and South Korea remained supported by artificial intelligence-related investment trends, while Chinese equities struggled amid weak consumer confidence and slowing industrial activity.

Europe

European equities experienced volatility during August as weaker manufacturing data and slowing consumer demand increased expectations for further European Central Bank policy easing.

However, easing inflation trends and stabilising energy prices provided some support for broader investor sentiment despite concerns regarding slowing growth.

United States

U.S. equities experienced periods of volatility during August as investors responded to softer economic data and increasing expectations that the Federal Reserve could begin cutting interest rates sooner than previously expected.

Technology companies remained relatively resilient overall, though elevated valuations and profit-taking created short-term fluctuations within major artificial intelligence-related stocks.

United Kingdom

UK equities delivered relatively stable performance during August as moderating inflation and expectations for future Bank of England rate cuts supported financial conditions.

Economic growth remained subdued, though investors responded positively to improving consumer confidence and declining borrowing cost expectations.

Japan

Japanese equities experienced heightened volatility during August as yen fluctuations and changing expectations regarding Bank of Japan policy adjustments influenced investor sentiment.

Technology and exporter sectors remained supported by resilient global semiconductor demand despite broader market uncertainty.

Emerging Markets

Emerging markets delivered mixed results during August as weaker global growth expectations and continued Chinese economic weakness weighed on investor confidence.

However, easing U.S. bond yields and improving expectations for future Federal Reserve rate cuts provided support for some higher-risk assets.

Commodities

Commodity prices weakened modestly during August as slowing global manufacturing activity and softer Chinese demand reduced expectations for near-term consumption growth.

Oil prices declined slightly despite ongoing geopolitical risks, while industrial metals weakened due to concerns regarding Chinese construction activity. Gold prices remained relatively elevated amid expectations for lower future interest rates.