Invesco EMEA’s Post

Mark Lebida, CFA dives into the latest market trends, from the strong September performance of SMID stocks to the impact of global rate cuts and the evolving political landscape ahead of the U.S. election. With insights into both U.S. and emerging markets, this is a timely look at how different factors are shaping market returns. Check out the full VettaFi Advisor Perspectives article for a deeper perspective on what’s driving the economy this season. https://lnkd.in/gju7ykEa #MarketCommentary #Journey #MarketTrends

🌍 What trends should asset managers watch this September? 📈 As September unfolds, the latest Global Markets Digest from Acuity Knowledge Partners reveals crucial insights that asset managers need to consider: • Economic shifts: A slowdown in the U.S. manufacturing sector raises questions about growth sustainability amid persistent inflation. • Emerging markets: Discover which resilient regions are presenting unique investment opportunities despite global headwinds. • Interest rate trends: Central banks are navigating inflation—understand how their decisions could impact your portfolios. • Sector spotlight: Identify sectors poised for growth in a volatile market environment. Stay ahead of the curve by arming yourself with these key insights! Read the full article here: https://lnkd.in/ePV5x8yq #AssetManagement #InvestmentStrategy #GlobalMarkets #MarketInsights #AcuityKP

From market movers to emerging opportunities, our weekly update has you covered. Dive in! Weekly Wrap Up - 1. After a challenging start to the week, the S&P 500 bounced back, closing August with a gain of over 2%, marking its ninth positive month out of the last ten. With 99% of S&P 500 companies having reported their results, an impressive 80% have exceeded analyst expectations. 2. Investors were encouraged by confirmation that inflation remained low and close to the Federal Reserve's target. The core Personal Consumption Expenditures Index rose at an annual rate of 2.6% in July, slightly below the forecasted 2.7%. 3. Major European indices continued their rally for the fourth consecutive week, driven by significantly slower inflation, strengthening the case for a potential interest rate cut by the European Central Bank (ECB) in September. Weekly Spotlights – The market is wrapping up the summer like it's been sipping on a piña colada—strong and flirting with record highs! Thanks to a flexing economy, corporate profits on the rise, lower bond yields, and whispers of easier policies from the Fed, it's all sunshine and rainbows. Last week's GDP update was like finding out your favorite beach spot isn't just good—it's been above-trend awesome! But with the potential for some choppy waves ahead, remember to keep your investment game strong and spread your assets like sunscreen—across different styles, sectors, and assets!

Markets rallied last week as the U.S. election and Fed rate cut spurred investor confidence, pushing major indexes to new highs. International markets had a mixed performance, with European stocks lagging and Asia climbing on China's stimulus news. Stay tuned—more key economic data is on the horizon this week! Read more here: https://hubs.ly/Q02XPSZ20

How did global markets fare in Q3 2024? From Federal Reserve rate cuts to emerging markets rising, Darin Richards unpacks the latest shifts and what to expect for the remainder of 2024. Click the link below to learn more.  #MarketCommentary #InvestmentStrategies #Q3Recap

How did global markets fare in Q3 2024? From Federal Reserve rate cuts to emerging markets rising, Darin Richards unpacks the latest shifts and what to expect for the remainder of 2024. Click the link below to learn more.  #MarketCommentary #InvestmentStrategies #Q3Recap

𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 𝟐𝟎𝟐𝟒: 𝐆𝐥𝐨𝐛𝐚𝐥 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 𝐢𝐧 𝐅𝐨𝐜𝐮𝐬 – 𝐓𝐫𝐞𝐧𝐝𝐬, 𝐑𝐞𝐜𝐨𝐯𝐞𝐫𝐲, 𝐚𝐧𝐝 𝐖𝐡𝐚𝐭’𝐬 𝐍𝐞𝐱𝐭 November was a dynamic month for global markets, with movements influenced by inflation data, central bank policies, and regional economic developments. Here’s a snapshot of key trends: 1. US Markets: Resilient Yet Cautious     The S&P 500 and Nasdaq posted moderate gains amid easing inflation concerns and signs of economic stability. However, tech stocks faced headwinds due to semiconductor demand uncertainties and cautious sentiment around Federal Reserve rate decisions.  2. European Markets: Slow Recovery     European equities experienced mild growth as the European Central Bank hinted at a steady pace of rate cuts. Nonetheless, Germany's industrial sector remained weak, especially in manufacturing and auto production.  3. Asian Markets: Divergent Performances    Japan's stock market surged on strong domestic demand, while China saw minor improvements due to government efforts to revive the real estate sector. India’s markets recovered steadily following a sharp correction in October, indicating renewed investor confidence.  4. Currency and Bond Markets     The US dollar maintained its strength, creating challenges for emerging markets, while bond yields continued to rise globally. Optimism about potential interest rate cuts in 2024 provided some relief for fixed-income investors.  5. Looking Ahead   With December approaching, investors remain focused on central bank actions, geopolitical developments, and ongoing corporate earnings. These factors will shape the path for equities and other assets as we head into the new year.

Review and Preview for August and September Month. August Summary: Global equities experienced heightened volatility in the first week of August due to macroeconomic factors, including the unwinding of the JPY carry trade, rising fears of a US recession following weak economic indicators and weak earnings guidance of major tech companies. This led to a significant sell-off in global markets, although most of the losses were recovered over the following weeks. Notably, the initial downturn proved to be just a minor blip in the context of the entire month, as major indices closed positively. European markets in particular reached record highs, driven by sharply lower inflation that fuelled expectations of further interest rate cuts by the ECB. Similarly, the Fed confirmed its trajectory towards rate cuts during the Jackson Hole speech, further supporting the rally in global equities. Among the major indices, the Hang Seng Index (HSI) stood out as a significant outperformer, rising approximately 4% m/m as investors concentrated on big tech and internet stocks, drawn to the index’s relative undervaluation in the global equity landscape. September Outlook: Investors are expected to closely monitor US economic data in the coming month, as these indicators will likely influence the Fed's decisions on rate cuts, which could further bolster global equities. China's record stimulus for the property market would also be a key focus for investors, potentially impacting sentiment as the month progresses. However, September has historically been a challenging month for global equities, with seasonal trends often leading to negative performance. In Europe, the German regional elections could weigh on investor sentiment, raising the equity market's risk premium. Beyond these factors, geopolitical concerns, including the ongoing conflicts in the Middle East and the Russia-Ukraine war, will remain critical elements for investors to watch as they continue to influence global market dynamics. #GlobalMarcos #CrossAsset #GlobalMarkets #Equities #EmergingMarket #DevelopedMarket

Market Update: Navigating Volatility with a Balanced Approach The markets have been under pressure recently, with significant corrections in midcap stocks and broader indices like Nifty experiencing downward trends. This dip is a result of a combination of global and domestic factors: What’s Causing the Decline? 1. Global Headwinds: Rising U.S. bond yields and fewer anticipated interest rate cuts have reduced the attractiveness of emerging markets for foreign investors. 2. Earnings Concerns: Domestic markets are grappling with expectations of slower earnings growth in key sectors. 3. Sectoral Weakness: Across the board, heavyweights in financials, IT, and consumer sectors have seen corrections, intensifying the pressure on midcaps and small caps. Sector-Wise Observations: • Large Caps: These have been relatively resilient but are seeing valuation corrections as well. • Midcaps and Small Caps: These segments have witnessed sharper sell-offs, primarily driven by profit-booking, liquidity pressures, and investor caution. • IT and Financials: While these sectors have seen corrections, the long-term structural growth remains promising. • Industrials: Supported by government capex plans, this sector offers potential despite near-term fluctuations. Investor Approach: What Should You Do? 1. Stay Calm: Market volatility is natural and often short-lived. Avoid reacting impulsively to short-term noise. 2. Reassess Your Goals: This is an ideal time to revisit your investment objectives and ensure your portfolio aligns with your risk appetite and financial goals. 3. Focus on Quality: Invest in fundamentally strong companies across large, mid, and small caps. Quality always prevails in the long run. 4. Diversify Wisely: Spread your investments across sectors and asset classes to reduce risks. 5. Think Long Term: Wealth creation is a marathon, not a sprint. Historically, corrections have paved the way for better opportunities. The Key Takeaway: Corrections and volatility are opportunities in disguise. By staying disciplined, informed, and strategic, you can turn these challenges into long-term advantages. Remember, it’s not about timing the market but about the time you stay invested.