Investment Update – April 2024

In 2024, global stock markets have exhibited strong performance, with the Nikkei 225 leading with over 10% year-to-date growth, closely followed by the Eurostoxx and Taiwan markets. While the US, UK, and Canada markets have seen growth around the 5-6% mark, the Far East has lagged behind, showing signs of slight recovery, particularly in China and Hong Kong.

The focus remains on interest rates, with expectations of rate cuts and their potential impact on markets. Higher borrowing costs aim to control inflation but can dampen company profits. However, certain sectors, like banks, may benefit. Geopolitical tensions, including the possibility of World War III and Middle Eastern instability, are monitored, though markets have shown resilience thus far.

Structured product pricing remains favourable, especially for capital protected products, while market performance reflects cautious optimism, with tech sectors poised for further growth. Potential challenges, such as an anticipated active hurricane season in the US, may impact markets, but overall, stability is expected to persist.