Global Markets: Key Trends of the First Semester. What Happened?

What Happened in the Global Markets in the First Half of 2024?

The first half of 2024 is coming to a close, and it has been marked by significant events and trends in the global markets that have captured the attention of investors and analysts alike.

1.
Mega-Caps’ Unstoppable Growth

One of the prominent features of the market has been the unstoppable march of mega-cap companies, with Nvidia and other top performers collectively increasing their market value by a staggering $3.6 trillion.
The Magnificent 7, as they are often referred to, have seen remarkable growth, outpacing many other sectors.

2.
Central Banks’ Prudent Changes

The first half of 2024 also witnessed the beginning of cautious changes by central banks.
While the anticipated global wave of interest rate cuts did not materialize as expected, central banks around the world made subtle shifts in their policies, hinting at potential future adjustments.

3.
Political Turbulence and Mergers & Acquisitions

Political turbulence, especially in Europe with unexpected election outcomes, created ripples in the markets.
This, alongside the resurgence of mergers and acquisitions, added to the dynamic landscape of the first six months of 2024.
Notable deals, such as Capital One acquiring Discover Financial and Synopsys buying Ansys, fueled a 5% increase in global M&A activity compared to the previous year.

4.
Bonds Under Pressure and Surging Commodity Prices

Bond markets faced challenges, particularly driven by developments in the French debt dynamics post-unexpected elections.
On the other hand, commodity markets experienced significant movements, with cocoa prices soaring by nearly 85% and gold reaching a historic high of just under $2,450 per ounce.
The oil market saw a respectable 12% increase, while Bitcoin surged past $70,000, setting new records.

5.
Market Volatility in Developing Regions and Currency Movements

Emerging markets in Africa, Asia, and Latin America saw varied performances, with bonds from countries like Ecuador and Argentina experiencing notable gains amidst ongoing debt concerns.
Currency devaluations in Nigeria, Egypt, and Mexico, as well as the weakening of the Japanese yen against the US dollar, underscored the impact of global economic shifts on diverse regions.

The first half of 2024 has set the stage for potential future trends and developments in the global financial landscape, as investors remain vigilant amidst uncertain times.