ETF Performance Report August 2024

Global equities started the month of August in the negative territory due to mounting fears of the United States entering a recession. This sentiment was fuelled by disappointing US labour data, whereby the unemployment rate rose to 4.3% in July 2024, which is near a 3-year high. Additionally, the Bank of Japan’s decision to increase its policy rate had led to an abrupt unwinding of carry trade positions which also contributed to the sharp sell-off across the globe. 

However, global equities quickly recouped their losses and rebounded as investors scaled back on fears over a potential recession in the US. The upward momentum was driven by positive U.S economic data while minutes from the recent US Federal Reserve meetings have signalled that US interest rate cuts were set to begin in September. Overall, the MSCI World Index gained 2.5% month-on-month (MoM) (versus 1.7% in July).