In this Capital Markets Update, Chris Arcari shares the latest trends in the market for Q1 of 2024.

Markets dramatically scaled back their expectations for the timing and size of interest-rate cuts in 2024. This was down to much stronger US growth than expected, improving global growth momentum and signs that the downtrend in inflation is slowing.

However, optimism about US and global growth, and enthusiasm for all things AI, more than offset any concerns about slower rate cuts. Equities recorded their best first quarter in five years and credit spreads fell, despite a significant rise in sovereign bond yields.