• Unlike at the end of 2023, global equity and bond markets have diverged since the beginning of 2024.
  • While US economic growth remains strong, the pace of disinflation has become more gradual.
  • This combination of stronger-than-forecasted growth and inflation has led markets to revise their Fed rate cut expectations.

Actionable ideas

  • In credit favour quality
    Strong economic data supports credit markets, but with the Fed on hold, we would favour higher-quality companies less exposed to high costs of refinancing.

  • Multi-Asset to balance opportunities and risks
    A multi-asset approach could help to exploit equity opportunities, while also potentially benefiting from the appeal of bonds during a phase of economic slowdown.

Key Dates

5 March

Euro area final PMI

 

7 March

ECB Monetary Policy Committee

 

8 March

US Employment Situation Report 

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