For the most part, economic output amongst the world’s developed economies remained stable in the first quarter, but concerns regarding a slowdown continue to persist. The International Monetary Fund updated its global growth forecast for 2024 from 3.1% to 3.2%. Developed market central banks maintained their cautious stance despite persistently stubborn inflation levels. While headline inflation continues to cool in many instances, overall inflation continued to surpass central bank targets. While economic growth recovered in China, concerns remain about the economy, particularly the property sector. Investors continue to shift capital to other regions of Asia including India, which remains one of the fastest growing emerging economies. Most developed equity indices posted positive returns in the first quarter as declining inflation expectations drove gains across most sectors. Bond yields were relatively stable during the quarter, leading to mixed results across the globe and muted performance in most sectors of the bond market. In the commodities market, precious metals including gold, silver and copper bounced while oil prices jumped amidst continued geopolitical uncertainty.
