Hero 1024x768 positive Hero 1024x768 positive Hero 1024x768 positive

March market performance: everybody contributed to the party

Market Rewind
Soren Otto 400x400
Søren Otto Simonsen

Senior Investment Editor

As we conclude the first quarter of 2024, the financial performance fired on all cylinders in March. Global equities rose by 3% in a month where all regions posted positive results.
Web 1200x500 Global equity performance 20240402


The best performing region in March was Europe, climbing 3.5%, as inflation figures as well as the overall macroeconomic picture showed a situation, where easing financial conditions in the shape of rate cuts seem increasingly likely compared to rate hikes and where recession scares are lower even though there are still risks on the horizon.

In the US, rate cuts continue to be postponed due to an economy that still seems to be in a relatively good condition according to the stock markets, despite continued uncertainties due to e.g. stretched valuations, the upcoming election, and growing debt. As such, the S&P 500 posted a return of a bit more than 3%.

The Asian and Emerging Markets regions posted returns of 2.2% and 2.3% respectively. The performance was driven by a rebound in Chinese equities fuelled by, among other things, some positive earnings although the latter part of the month saw some less positive reports from companies like Alibaba.

Web 1200x500 Regional performance 20240402

Energy was the best performing sector in March as oil prices had a good month, which is also clear from the commodities graph in the infographic further down.

While all sectors posted positive returns for March, the so-called Magnificent Seven stocks have started to show some cracks, with two of the three sectors they belong to – information technology and consumer discretionary – posting the lowest returns.

Web 1200x1200 Sector performance 20240402

Bond performance was also positive throughout March, although we saw a notable trend: risky assets outpaced quality investments as the economy stays resilient in the US, and it shows signs of recovering in Europe. However, concerns persist as inflation appears to be stabilising at a level notably higher than the 2% target set by central banks. This persistent inflationary pressure dampens prospects for a bond bull market, as investors seek greater returns to hold fixed-income securities. Considering these factors, we exercise caution and advocate for short-term bonds over their longer-duration counterparts.  Bond performance is written with support from Althea Spinozzi, Head of Fixed Income Strategy at Saxo.                   

Web 1200x500 Global bond performance 20240201
Check out the rest of this month’s performance figures here:
A4 Monthly market performance 202404022x

Sources: Bloomberg and Saxo

Global equities are measured using the MSCI World Index. Equity regions are measured using the S&P 500 (US) and the MSCI indices Europe, AC Asia Pacific, and EM respectively. Equity sectors are measured using the MSCI World/Sector] indices, e.g., MSCI World/Energy. Bonds are measured using the USD hedged Bloomberg Aggregate Total Return indices for total, sovereign, and corporate respectively. Global Commodities are measured using the Bloomberg Commodity Index. Oil is measured using the next consecutive month’s WTI Crude oil futures contract (Generic 1st CL Future). Gold is measured using the gold spot dollar price per ounce. The US Dollar currency spot is measured using the Dollar Index Spot, measuring it against a weighted basket of the following currencies: EUR, JPY, GBP, CAD, SEK, and CHF. Unless otherwise specified, figures are in local currencies.

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • 350x200 peter

    Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • 350x200 althea

    Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • 350x200 peter

    Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • 350x200 charu (1)

    FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • 350x200 ole

    Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.