Congratulations to Dr. Brittany Williams, Assistant Professor of Higher Education Administration! Dr. Williams has been selected as the 2020 First Place Dissertation Award Winner for the American Association of Blacks in Higher Education. The title of her dissertation is I Did Everything I Was Supposed to: Black Women Administrative Professionals’ Push Out and Opt Out of Higher Education. She will at the AABHE conference to present her work on Thursday, March 19 at 2 pm. For more information on the AABHE conference, visit https://www.aabhe.education/conference
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A 150% surge in chipmaker Nvidia has led rally in world stocks
*
Yen has slumped to 38-year low against stronger US dollar
*
Elections have triggered big moves from Mexico to France
*
Cocoa has soared almost 85% in commodity markets
*
Graphic: World FX rates website
By Marc Jones and Rodrigo Campos
LONDON/NEW YORK, June 28 (Reuters) – The unstoppable march of the
mega caps, sloth-like central bank pivots, political palpitations aplenty
and M&A is back – the first half of 2024 has been another
whirlwind in world markets.
Forecasts for a global interest-rate-cutting frenzy may not have materialized, but Nvidia and the rest of the Magnificent 7 soared another $3.6 trillion in market value.
MSCI’s 47-country world stocks index has clocked up a punchy 11%
since January. Good yes, but nowhere near the 30% leap of
team tech, or the frankly eye-popping 150% gain of chip champ Nvidia.
“Thirty percent of the S&P’s returns this year have come from Nvidia alone,” the chief investment officer of IBOSS
Asset Management Chris Metcalfe said, pointing out
it was now the most expensive stock on the most
expensive market in the world.
It is not just equity markets where milestones have been set.
Japan’s yen has bowed to a 38-year low against the dollar in currency markets.
Cocoa had one of its best-ever runs while French bond risk
has exploded to its highest level since the euro crisis after French President Emmanuel
Macron’s drubbing by the far right in EU elections this month drove
him to call a snap parliamentary election on Sunday.
Government bonds had been having a tough time anyway.
Predictions of a gush of rate cuts have turned
out to be just a dribble in a few parts of Europe and emerging markets and certainly not in the United States yet.
As a result, anyone owning a basket of
benchmark bonds has lost around 1.5% of their money.
“At the end of last year, the markets expected seven (U.S.) rate cuts and now they are expecting just one or two,” Nadege Dufosse,
the head of multi-asset at Candriam said. “That has been the big driver and explains the (poor) performance.”
A shaky performance from U.S. President Joe Biden in his latest TV
debate against Donald Trump has just ratcheted November’s
U.S. election uncertainty up substantially. There’s also a general election in Britain on July 4 although there aren’t expected to be
many market fireworks despite it being almost certainly the first change of
government in 14 years.
Polar Capital fund manager Georgina Hamilton explained that was because unlike
in France and the U.S., the two main candidates to lead the UK are fairly centrist.
“Having had quite a lot of turmoil in recent years … you can’t underestimate that calmer political backdrop,” she added.
GOLD SHINES
The big story in commodities has been cocoa sky-rocketing almost 85% due to
shortages which is already its second-biggest annual leap of all
time, although certainly is not good news for chocoholics.
Gold hit a record high of just shy of $2,450 an ounce last month.
Oil is up a respectable 12% while bitcoin broke though $70,000 and
set a flurry of new highs after U.S. watchdogs gave bitcoin exchange-traded
funds the green light.
The value of global M&A activity is up 5% compared to last year.
That’s mainly down to a brace of $35-billion deals that saw credit-card firm Capital One take
over Discover Financial and chip designer Synopsys buy out rival Ansys,
although it could have been much more though if BHP’s gripping $49-billion pursuit of Anglo American had succeeded.
DISTRESSED TO IMPRESS
Off the beaten track, Ecuador’s bonds have made 46% despite lingering debt concerns and Argentina’s
new chainsaw-wielding President Javier Milei has helped
its bonds jump 32%.
Emerging-market veteran Kevin Daly at Aberdeen said there has been a “distressed to impress” move, with
the bonds of crashed countries like Zambia, Ghana and Sri Lanka
all rallying between 16%-23% as their years-long debt restructurings have neared an end.
As always though, there has still been plenty of
downs in emerging markets.
Chinese property stocks have fallen for the ninth quarter in a
row. Devaluations have shoved Nigeria’s and Egypt’s currencies down 42%
and 36% respectively, while Mexico’s peso is down nearly 8%
this month after a resounding presidential election result fed worries about its future path.
(Additional reporting by Harry Robertson, Elizabeth Howcroft and Pasit Kongkunakornkul;
editing by Rod Nickel)
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