Chapters
Global equities
Major global equity indices advanced in the second quarter (Q2) of 2024, driven by US tech euphoria and hope for a soft landing for the US economy, supported by emerging signs of growth in Europe, China and Japan. However, June presented a mixed picture for global markets on a month-by-month basis.
In the US, the S&P 500 reached another all-time high, fuelled primarily by big tech and growing optimism around the prospect of a US Federal Reserve (Fed) rate cut later this year, following a more benign inflation print in June.
In Europe, gains for far-right parties in the European Parliamentary elections led French president Emmanuel Macron to call a snap election, putting equities under pressure. While the Euro Stoxx 600 was up over the quarter, it dipped into negative territory in June. Similarly, the FTSE 100 performed strongly over the quarter, but lost ground in June amid election concerns.
In Asia, Hong Kong and Chinese mainland stocks fell for the second consecutive month in June, with markets lethargic ahead of a July meeting of China’s top leaders. However, stocks delivered a positive performance over the quarter. In Japan, the Nikkei rallied on a weakening yen, but was unable to sustain the forward momentum of Q1, over the second quarter.
At the US sector level, earnings growth broadened over the quarter, with eight sectors reporting year-on-year (y/y) increases. Of these, communication services, healthcare, information technology, and energy delivered double-digit growth.
| Index | June (%) | Q2 (%) |
|---|---|---|
| S&P 500 | 3.6 | 4.2 |
| Nasdaq Composite | 6.0 | 8.4 |
| MSCI ACWI | 2.2 | 2.9 |
| Nikkei 225 | 3.0 | -1.8 |
| EuroStoxx 600 | -1.3 | -0.2 |
| FTSE 100 | -1.1 | 3.7 |
| Hang Seng Index | -1.1 | 8.9 |
| SSE Composite | -3.9 | -2.4 |
Source: Bloomberg as at 30 June 2024.
