Elevated market volatility drove a sell-off in global equity markets in the first quarter. Europe was hit hardest with a deep sell-off from the invasion of Ukraine. Emerging markets were weak given rising geopolitical uncertainty, a strengthening U.S. dollar, and increased concerns over Federal Reserve tightening. The panic and reflux trade post invasion is now over and markets have shifted their focus back to general macro drivers. Going forward, emerging market regions that have already cycled through macro drivers, like central bank tightening, may offer better growth opportunities.
