Mid-Week Wrap: 18th January 2024
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Market Mood
Global equity markets have shown significant divergences throughout the current year. The chart above illustrates the percentage returns on the S&P 500, Euro-Stoxx 50, Japan, and Emerging Markets (all in USD terms) since December 1, 2023.
In December, global equities depicted a close alignment, concluding the last month of the year with gains of 3-4%. However, the disparity has widened considerably this year, as expressed in USD terms.
As of January 17th, Japan has taken the lead with a positive return of +4.5% in USD terms. The S&P 500 follows closely with a year-to-date gain of +3.3%, while Euro-Stoxx 50 is slightly down at -0.3% in USD terms. Emerging Markets, on the other hand, have experienced a significant decline of -3.3% in USD terms, driven by diminished expectations for a US interest rate cut in March.