How have the financial markets performed?
The first quarter of 2024 was a particularly good quarter for stocks, while the economic picture was mixed. In the United States, the economy outperformed expectations, with solid growth due to stable consumer spending thanks to low unemployment and rising wages. The European economies showed signs of challenges, especially in Germany, where zero growth was recorded due to specific problems in that economy. Meanwhile, China remained fairly stable, but continued concerns about the real estate sector overshadowed the overall economic outlook. The financial markets reflected these conflicting economic trends. While equity investors welcomed the positive developments in the market, bond investors faced challenges from rising yields. The bond market was under pressure from rising yields, which led to negative returns for government bond investors. The rise in yields were in contrast to the favourable conditions in the stock markets and highlighted the volatility and dynamic nature of financial markets during the first quarter of 2024.