Investment Insights
The Return of Volatility?
Table of Contents
Discover the latest trends in our monthly Investment Note for October 2024 from Lighthouse Canton, titled "The Return of Volatility?"
Global equities capped off a robust month: MSCI EM Index gained 8.7%, while MSCI World Index moved up by 4.5%. The Chinese equities led the overall outperformance in emerging markets, with CSI 300 and Hang Seng Index gaining 25% and 23%, respectively.
The US unemployment eases a bit; Non- Farm Payrolls expand, beating market expectations The Fed dot plot chart hinted at an additional 50-75 bps rate cut in CY24 and 100-125 bps cut in CY’25.
Gold prices remain resilient: Gold ended September up 5.7% and is currently trading up around 0.6% for the month of October (as of 14th October), having breached the $2600/oz handle in the process.
India’s CPI spikes led by food inflation: India’s headline inflation spiked sharply higher in Sep’24 to 5.49%, after two consecutive months of sub 4% readings.
The RBI keeps the repo rate unchanged; Changes the stance to 'Neutral’ The RBI has guided towards a subdued inflation print in Q4 FY25 owing to a successful kharif harvest, sufficient buffer stocks of cereals, and the prospect of a strong crop in the upcoming rabi season.
Muted earnings growth expectations for India in Q2 FY25: The moderation in corporate earnings, after four consecutive years of healthy double-digit growth, is likely to come on the back of pressures from commodities, fading tailwinds from BFSI asset quality improvements, high base, and easing demand.
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