• Favouring US equities globally and Indian equities in Asia and
  • Owning gold and Emerging Market (EM) USD bonds as diversifiers.

Dubai, United Arab Emirates – Standard Chartered announced today its Global Market Outlook report for the second half of 2024, offering insights into major asset classes worldwide. The report advises investors to adopt balanced foundation allocations comprising equities, bonds and alternative assets, which are likely to offer higher total returns than allocations that are solely aimed at generating income.  

According to the report, major central bank rate cuts, which started in Q2 are expected to extend into the second half of the year. For markets, this policy shift is significant as it creates the conditions for a soft-landing with pre-emptive rate cuts helping avoid a sharp, recessionary slowing of economic growth. This will likely support an extended earnings growth cycle which should result in equities continuing to outperform bonds and cash in H2 24.

The report recommends capitalising on US and Indian equities, which are expected to outperform their peer markets, while also seizing opportunities in US growth sectors, particularly technology and communication services. In Europe, the barbell-like strategy aligns with the improved growth outlook, leading to an Overweight stance in the technology and healthcare sectors. In China, the focus is on select beneficiaries of government policies, with an Overweight position in technology, communication services, and consumer discretionary sectors.

The report also advocates owning Emerging Market (EM) USD bonds and gold as diversifiers. EM dollar-denominated government bonds offer relatively high yields and attractive value, making them likely to outperform global bonds. Similarly, the gold rally, driven by a tight demand/supply balance, is expected to persist. This trend is supported by strong central bank demand and a more favourable yield environment amid rate cuts.

Ayesha Abbas, Managing Director and Head of Affluent and Wealth Solutions, Europe, Middle East and Africa, and UAE at Standard Chartered Bank, said: “Our Global Market Outlook report aims to equip investors with actionable insights in today’s rapidly evolving economic landscape. As we approach a potential inflection point in the form of central bank rate cuts and the US election, it is crucial for investors to adjust their portfolios. Adapting investment strategies to key events will support them in maintaining a well-diversified portfolio capable of capturing investment opportunities while effectively managing risks”.

For further information please contact:
Khaled Abdulla, CFA®
Director, Head of Communications 
Corporate Affairs, Brand & Marketing
United Arab Emirates
M: +971 52 5546 475 
T: +971 4 508 3155

Standard Chartered

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