Central Bank easing picks up equities & currencies alike – Month in Review: September 2024
Macroeconomic Environment Review
September saw improved sentiment across financial markets, with rallies in stocks, declines in Treasury yields, and rising gold prices. In the FX markets, the USD Dollar Index fell 1.1%, with the dollar weakening across a range of currencies, particularly against high-beta currencies like the Australian dollar and the British pound. Emerging market currencies showed mixed performance but tended towards positive gains, especially the Brazilian real and South African rand. Looking ahead, optimism is fueled by several factors: signs of a US soft landing, Fed easing with rate projections at neutral (around 3%), and China’s new stimulus. However, geopolitical tensions, such as those in the Middle East, and economic risks remain potential disruptors to this optimistic outlook.
US equity markets posted positive returns as the S&P 500 hit record highs, driven by hopes that the Federal Reserve’s 50bps rate cut would support the economy. Consumer discretionary and utilities sectors led, while energy and healthcare lagged. Fed Chair Jerome Powell emphasized the economy’s strength and defended the rate cut as proactive. Inflation moved closer to the 2% target, and US jobs data showed mixed results. The US Composite PMI (Purchasing Managers’ Index) rose to 54.6, indicating continued private sector growth, led by services.
Monthly Performance Review
During September 2024, AENAON Systematic Strategies generated the following total returns:
Across the spectrum of our benchmark indices, our strategies’ performance during September was mildly mixed. As a comparison, the US S&P 500 equities index gained 2.02%, the Barclay Hedge Fund Index posted a 1.56% advance, the Barclay CTA Index added 1.10% while the other benchmark indices can be seen on the chart below.
Chart 1: Monthly Performance vs. Benchmark Indices – September 2024
Charts 2, 3 and 4: Inception-to-Date Performance vs. Benchmark Indices
You can always review our updated factsheets at the following Fundpeak links, with monthly performance updates and statistics since inception:
