9 July 2024
Monthly Market review – Download Article
For now, markets are reaping the rewards of the AI revolution and strong corporate profits, albeit not evenly distributed but nevertheless rewarding for shareholder. There are some signs of complacency across markets, with volatility measures in an extended low period, financial conditions benign, credit spreads historically low, valuations in parts of the markets high, and ample liquidity available. However, rate cuts have started in several countries and the US will almost certainly follow in coming months, with further cuts expected next year. Although a sharp slowdown cannot be ruled out, a soft landing is now widely anticipated, underpinning a reasonable outlook for corporate profits.
