The Return of Volatility?

Discover the latest trends in our monthly Investment Note for October 2024 from Lighthouse Canton, titled "The Return of Volatility?"

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• ‍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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Check our report below to gain key insights about the same

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