Portfolio April 2024

Equity markets were in the spotlight in the first quarter. Headwinds picked up a little towards the end. But despite some evidence of weakening, the economic data coming from the US has remained encouraging in recent weeks. Here in Europe, a process of normalisation is apparent. We therefore expect the growth environment to remain constructive with declining rates of inflation. What does this mean for the equity markets?

Even though growth in the USA has slowed somewhat, growth rates in real terms still point to a “soft landing” scenario. Moreover, we are expecting the uptrend in inflation to weaken somewhat over the next few months. Thus US interest rates are likely to have reached their peak, and look set to decrease during 2024. In Europe, inflation is declining more sharply, so the ECB will probably already cut its interest rates in the summer.

What do these scenarios imply for investors? You can find out more and read our experts’ views on the current situation in the latest Portfolio.