Capital Markets View

As the second quarter gets underway, global equity and fixed income markets seemingly have divergent views of the macroeconomic landscape. Equities, particularly mega-cap growth stocks, have performed strongly, bolstered by the notion that central banks are nearing the end of their tightening cycles. Bonds, however, seem to be signaling that tougher economic times lie ahead. Non-US equities have outperformed their US peers with share prices in Europe bolstered by easing recession fears as natural gas supplies, aided in large measure by a warmer-than-average winter, proved more than adequate in recent months after being disrupted for much of 2022.