Important information

This website is for Individual Investors in Portugal only.

If you are an Institutional Investor click here, if you are an Financial Intermediary click here. Should you be looking for information for another location, please click here.

By clicking, you acknowledge that you have fully understood and accepted the Legal and Regulatory Information.

Capital IdeasTM

Investment insights from Capital Group

Categories
World Markets Review
Markets rally on rate cut expectations: Q4 roundup
January 10, 2024
Download PDF

Global stocks rallied, boosted by strong U.S. economic growth, declining inflation and signs that major central banks around the world may be done raising interest rates. Stocks moved sharply higher as officials at the U.S. Federal Reserve (Fed), the European Central Bank (ECB) and other key institutions indicated that further interest rate hikes may not be needed amid moderate consumer price increases and low unemployment levels.


Information technology stocks led markets higher, rising nearly 18%. Ten of 11 sectors in the MSCI All Country World Index gained ground. Real estate stocks also staged a strong recovery after being hammered by rising interest rates over the past year. Consumer staples stocks rose but lagged the overall market, and energy stocks declined modestly amid falling oil prices. 


Bond markets rose across the board as investors welcomed central bank decisions to pause their aggressive rate-hiking campaigns. As inflation moved lower, investors and economists started to anticipate rate cuts in mid-2024, further fuelling a rally in nearly all segments of the bond market.


Learn more about
World Markets Review
Fixed Income
Global
Central Banks
Stock
Global Equities
U.S. Equities
Emerging Markets
Asia
Europe
Monetary Policy

Our latest insights

RELATED INSIGHTS

Hear from our investment team.

Sign up now to get industry-leading insights and timely articles delivered to your inbox.

By providing your details you are agreeing to receive emails from Capital Group. All emails include an unsubscribe link and you may opt out at any time. For more information, please read the Capital Group Privacy Policy

Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.

Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.