J.P.Morgan – Guide To The Markets, 3Q 2024

The daily edition of J.P. Morgan's Guide to the Markets provides quick access to the latest market and economic data. In the third quarter of 2024, key themes include resilient growth in the US economy and accelerating growth in European economies, accompanied by sticky inflation. The central banks are expected to slowly ease off the monetary brake despite inflation concerns. As economic growth broadens, equity performance is expected to shift gears with earnings growth broadening by sector and geography. Investors may find relatively more attractive valuations outside of the companies that have recently driven performance. The journey from ultra-low to 'normal' interest rates has been painful for fixed income investors, but the outlook for fixed income is now positive, with core bonds providing solid income. While the central expectation is for a benign macroeconomic scenario, there are risks around upcoming elections that could potentially upset financial markets. Governments deviating from a credible fiscal path under political pressure is a critical risk factor.