February 2024 | Newsletter 12
Markets rallied to close out the year as hopes of a soft landing once more came to the fore. Bond yields fell as central banks signalled a pause and markets began to price in a potential path for rate cuts. This spurred a rally in bonds and propelled developed markets equities back towards all-time highs.
Developed markets equities saw almost all sectors advancing over the quarter, led by interest rate sensitive sectors such as information technology and real estate. In the United States, the S&P 500 Index climbed 11.7% for the quarter and 26.3% for the year in local currency terms (Figure 1). The Australian ASX 300 was supported by elevated commodity prices, returning 8.4% for the quarter and 12.1% for the year.