July 2024

• Global markets advanced in July as easing inflation trends and growing expectations for interest rate cuts supported investor confidence.
• Technology and artificial intelligence-related sectors remained major market drivers despite increased volatility late in the month.
• Central banks in several developed economies signalled that monetary easing cycles could begin soon.
• Economic growth remained resilient overall, though manufacturing activity weakened across several regions.
• Political developments in the United States and Europe contributed to periodic market volatility.
• Commodity prices delivered mixed performance amid balanced supply and demand conditions.

Asia (ex. Japan)

Asian markets outside Japan delivered mixed but generally positive performance during July as strong semiconductor demand continued supporting technology-oriented economies such as Taiwan and South Korea.

Chinese markets remained relatively subdued despite additional government support measures, as investors continued monitoring weak domestic demand and ongoing property sector challenges.

Europe

European equities advanced modestly during July as easing inflation supported expectations for additional European Central Bank policy easing later in the year.

Political uncertainty remained elevated following election developments in France and other parts of Europe, though broader financial conditions stayed relatively stable.

United States

U.S. equities continued reaching new highs during July as investors increasingly anticipated that the Federal Reserve could begin cutting interest rates within coming months.

Technology and artificial intelligence-related companies remained dominant market leaders, though some volatility emerged late in the month as investors reassessed elevated valuations within the sector.

United Kingdom

UK equities delivered positive performance during July following the general election, which resulted in a decisive change in government and reduced some political uncertainty for investors.

Inflation trends continued improving gradually, increasing expectations that the Bank of England could soon begin lowering interest rates.

Japan

Japanese equities experienced increased volatility during July as speculation grew regarding potential future Bank of Japan interest rate increases and yen stabilisation efforts.

Despite short-term fluctuations, exporters and technology-related sectors remained supported by strong global semiconductor demand and resilient corporate earnings.

Emerging Markets

Emerging markets delivered mixed performance during July as improving global risk sentiment and easing inflation trends supported capital flows into some higher-risk assets.

Technology-oriented Asian markets remained among the strongest performers due to continued artificial intelligence and semiconductor investment momentum.

Commodities

Commodity prices delivered mixed performance during July. Oil prices remained relatively stable as geopolitical risks balanced against moderate global demand growth expectations.

Industrial metals experienced some volatility linked to Chinese demand concerns, while gold prices remained elevated due to expectations for future interest rate cuts and ongoing geopolitical uncertainty.