Europe | 42.3 % | 48.2 % | 90.5 % |
North America | 49.0 % | 15.7 % | 64.7 % |
Latin America | 0.4 % | 15.3 % | 15.7 % |
Eastern Europe | - | 7.8 % | 7.8 % |
Asia-Pacific | 4.2 % | 2.7 % | 6.9 % |
Asia | 4.0 % | 2.8 % | 6.7 % |
Africa | - | 4.6 % | 4.6 % |
Middle East | 0.2 % | 3.0 % | 3.1 % |
Total | 100.0 % | 100.1 % |
Market environment
US data continues to reflect a degree of economic resilience, with inflation figures still high. However, the disinflation trend continues in Europe. In the light of this, the Fed and the ECB are sticking to their plan and will probably start cutting interest rates this summer. The Bank of Japan bucked the trend: it put an end to eight years of negative interest rates, even amid increasing signs of substantial pay rises. This backdrop of robust growth, persistent inflation and more accommodative central banks is keeping the risky asset rally alive. The S&P 500 is having its best start to a year since 2019. Although the rally has mainly been fuelled by the Magnificent Seven, it spread to more corners of the market at the end of the month when cyclical sectors rebounded as commodity prices climbed. Oil was up 5% to $87 a barrel (Brent), while gold set a new record of more than $2,200 an ounce. Equity markets seem to have accepted the optimistic scenario under which central banks lower interest rates and the economy slows moderately, meaning that valuations are high though supported by earnings growth. Credit also continued to perform well. European yields eased in March, while the growth differential between the United States and the Eurozone persists.