Artificial Intelligence (AI) has been one the biggest market stories over the past couple of years. At the centre of it all is Nvidia, the California-based company that up until a few years ago was mostly known for its graphic cards used in the video game industry.

With the weak US employment report for July still in mind, investors were anxiously awaiting Federal Reserve (Fed) Chair Powell’s speech at the Jackson Hole Economic Symposium last week. It was his first address to the public since the Fed meeting in late July. Since then, a lot has happened.

While it's the excitement of exploring new places that drives us, we should be mindful of the environment we're travelling to. After all, as visitors, we bring with us a carbon footprint that can affect the local community.

After a tough start to August, equity markets around the globe performed positively, celebrating better-than-expected data out of the US (see below). In the US, the tech-heavy NASDAQ Composite index, rose more than the S&P 500, after underperforming in recent weeks in the context of a mixed earnings season.

In the absence of major economic releases last week, markets took a breather after a sharp fall on Monday, almost paring losses on Friday. The sell-off was due to a trifecta of dynamics triggered the previous week.

After another week with some volatile trading sessions, the S&P 500 equity index closed about 2% lower. US Treasuries rallied, with the 10-year yield falling to well below 4% (and, therefore, bond prices rising, as they move inversely to yields) as markets priced in more interest rate cuts by the US Federal Reserve (Fed). That made the US dollar decline against major, currencies, and the gold price move higher.

Private markets were once the reserve of sophisticated and institutional investors but have experienced significant growth in recent years. Now, a far broader range of private market investments are available to clients.

Last week, investors were faced with both disappointing earnings news and encouraging macro data, resulting in a few volatile sessions for stock markets. Mid-week, the S&P 500 had its worst decline since 2022. However, thanks to favourable US economic growth and inflation data, markets were able to recoup part of the losses at the end of the week.

As suspected by the market for some time, Joe Biden has decided to pull out of the US presidential race, endorsing his Vice President, Kamala Harris. While Harris polls better than Biden, she still lags Donald Trump. Even though there don’t seem to be any obvious challengers within the party, the Democrats can still choose other candidates.

Last week, US Treasury yields fell as US inflation came in lower than markets expected. Global bond yields and the US dollar also fell as markets firmed up their view that the US Federal Reserve (Fed) will cut interest rates in September and December.

A bit like the unpredictable weather we’ve had over the past few weeks, politics has been a rollercoaster. As expected, the UK election delivered a Labour win. While there might be tax and broader fiscal implications at the individual level, the outcome wasn’t unexpected, which is why it hasn’t moved markets that much.

The overall outcome of the French legislative elections came as expected: a hung parliament where no party/alliance managed to secure the absolute majority of 289 seats. But it came with a twist.

That Labour won a strong absolute majority, and the Conservative Party sank to the lowest result ever isn’t a surprise for markets, given the polls. The next government plans to follow the same fiscal rules as the outgoing one and so, in our view, it will have limited fiscal space. However, there could be modest effects on different groups of consumers and firms.

When we invest in companies and funds, we’re committed to active ownership. It’s an approach that not only enhances the investment process but can also have a positive impact on people and the planet.

As expected, the right-wing Rassemblement National (RN) won the first round of the French parliamentary election on 30 June. They came ahead of the left-wing alliance of the Nouveau Front Populaire (NFP), relegating president Macron’s centrist coalition to third place. However, the outcome of the second round on 7 July remains highly uncertain.

The French head to the polls on June 30 and July 7 to elect their members of Parliament. How does that work? There are 577 seats up for grabs, so a party needs 289 seats to have an outright majority to govern. Anything less, in general, would mean that several parties may try to work together to form a coalition. This has been the case since 2022, with a coalition supporting President Macron given that his party does not have an outright majority.

On June 30 and July 7, the French public will vote to elect their members of Parliament. There are 577 seats up for grabs, so a party needs 289 seats to have an outright majority to govern. Anything less, in general, would mean that parties may try to work together to form a coalition.

As key elections approach that could shape the policy landscape, Quintet highlights the dynamics that will drive the global economy and financial markets over the second half of 2024 and beyond

All eyes are on Europe this summer. It’s one of the most visited regions, time and again, by tourists from all around the globe. The European Football Championship also kicked off last week in Germany, the Summer Olympics in Paris starts next month and, for those more politically minded, we just had the European elections and there are key national elections in France and the UK on the horizon (and, Europe aside, the all-important US election in November).

As expected, the European Central Bank (ECB) lowered interest rates by 25 basis points last week. The main refinancing rate is now 4.25%, and the deposit rate is 3.75%. Even though the decision was expected, European equities fell slightly, government bond prices rose (yields fell), and the euro appreciated right after the announcement.