In November the mix of declining inflation and strong
US GDP growth in Q3 fuelled optimism in markets,
supporting the idea of a “soft-landing”.
This optimism was further bolstered by dovish talk from
members of the Federal Reserve, leading markets to
price in an additional 1% of interest rate cuts over the
next year, with a total anticipated cut of 1.5% by January
2025.
The combination of these rate cut expectations, and
resilient U.S. economic performance sparked a
significant rally in both global equities (+10%) and
global bonds (+6%) over the last month.