Adam Gault
By Elisa Mazen, Michael Testorf, CFA, & Pawel Wroblewski
Repositioning for an International Revival – Market Overview
International equities continued to climb in the first quarter, supported by improving investor sentiment, better economic data in the U.S., rate cuts beginning in Europe and confidence in a Japanese economy that is seeing improved corporate governance. The benchmark MSCI All Country World Ex-U.S. Index advanced 4.69%, while the MSCI Emerging Markets Index added 2.37% and the MSCI ACWI Ex-U.S. Small Cap Index gained 2.21%.
Growth stocks surged to start the year, buoyed by optimism that bond yields would continue to ease off their 2023 peak. Switzerland became the first major developed market to reduce rates in March, the U.S. Federal Reserve communicated its plan for three 25 basis point (bps) rate cuts this year and the market is pricing in 90 bps of easing from the European Central Bank. Against this backdrop, the MSCI ACWI Ex-U.S. Growth Index rose…
