March 2024

• Global markets continued advancing in March as resilient economic growth and strong technology sector performance supported investor confidence.
• Artificial intelligence-related enthusiasm remained a major driver of equity market gains globally.
• Central banks signalled that interest rate cuts were still likely later in the year despite stronger-than-expected economic data.
• Bond yields remained elevated but relatively stable compared with earlier months.
• Japanese equities continued outperforming following historic changes in monetary policy.
• Commodity prices strengthened modestly due to resilient global demand and geopolitical risks.

Asia (ex. Japan)

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

Chinese markets remained relatively subdued despite additional policy support measures, as investors continued expressing concerns regarding property sector weakness and slower domestic demand growth.

Europe

European equities advanced during March as easing inflation trends and resilient corporate earnings supported investor sentiment across several sectors.

Investors increasingly focused on the likely timing of European Central Bank interest rate cuts later in the year while monitoring slowing industrial activity and improving consumer conditions.

United States

U.S. equities reached further record highs during March as strong corporate earnings, resilient economic growth and continued artificial intelligence optimism supported broad market gains.

The Federal Reserve maintained expectations for potential interest rate cuts later in 2024 despite stronger-than-expected employment and inflation data during the month.

United Kingdom

UK equities delivered modest gains during March as inflation continued easing gradually and expectations increased that the Bank of England could begin cutting interest rates later in the year.

Economic growth remained relatively weak overall, though declining energy prices and improving financial conditions supported investor sentiment.

Japan

Japanese equities remained exceptionally strong during March after the Bank of Japan officially ended negative interest rates and yield curve control policies for the first time in many years.

Despite the historic policy shift, monetary conditions remained highly accommodative overall, supporting continued investor inflows and strong exporter performance.

Emerging Markets

Emerging markets delivered mixed results during March as resilient U.S. growth and elevated Treasury yields created challenges for some higher-risk assets.

Technology-focused Asian markets continued outperforming due to semiconductor demand and artificial intelligence-related investment trends.

Commodities

Commodity prices strengthened modestly during March as resilient global economic activity and geopolitical tensions supported energy and raw material markets. Oil prices rose steadily due to supply management efforts and ongoing Middle East tensions.

Industrial metals remained mixed due to weak Chinese property demand, while gold prices strengthened as central bank buying and geopolitical uncertainty supported investor demand.