June 2024

• Global markets delivered mixed performance in June as technology sector strength offset weakness in several cyclical and interest rate-sensitive sectors.
• Artificial intelligence-related enthusiasm continued driving gains within global semiconductor and large-cap technology companies.
• Central banks began diverging on policy, with some initiating interest rate cuts while others maintained restrictive guidance.
• Political uncertainty increased in Europe following election developments across several countries.
• Bond yields remained elevated as inflation moderated only gradually.
• Commodity prices remained relatively stable despite ongoing geopolitical and supply concerns.

Asia (ex. Japan)

Asian markets outside Japan delivered mixed results during June as continued strength in semiconductor and technology sectors supported Taiwan and South Korea, while concerns regarding Chinese domestic demand persisted.

Chinese authorities maintained targeted stimulus efforts aimed at supporting the property sector and economic activity, though investor confidence remained cautious regarding longer-term growth prospects.

Europe

European equities experienced increased volatility during June following political uncertainty linked to European parliamentary elections and the announcement of a snap election in France.

Despite political concerns, investors continued anticipating European Central Bank policy easing after the ECB delivered its first interest rate cut of the cycle during the month.

United States

U.S. equities reached further record highs during June as continued artificial intelligence optimism and strong earnings expectations supported major technology companies.

However, broader market participation remained narrower as elevated interest rates and slowing economic activity weighed on smaller companies and cyclical sectors.

United Kingdom

UK equities delivered relatively stable performance during June as inflation continued moderating gradually and investors anticipated future Bank of England rate cuts.

Attention increasingly shifted toward the upcoming general election, while domestic economic growth remained subdued but stable overall.

Japan

Japanese equities remained strong during June as weaker yen conditions and strong global technology demand continued benefiting exporters and semiconductor-related companies.

The Bank of Japan maintained accommodative monetary policy conditions while signalling gradual future reductions in bond purchases.

Emerging Markets

Emerging markets delivered mixed performance during June as higher U.S. bond yields and uneven Chinese recovery conditions created varied outcomes across regions.

Technology-focused Asian economies remained key outperformers due to semiconductor demand and continued artificial intelligence investment trends.

Commodities

Commodity prices remained relatively stable during June as geopolitical tensions and supply management efforts balanced against moderate global demand growth.

Oil prices traded within a relatively stable range, while industrial metals remained supported by supply constraints despite weak Chinese property sector demand. Gold prices consolidated near elevated levels.