Setting the stage for 2025 On the Global Stage

The month started off on a high note, with equities inching upward thanks to positive signals from Federal Reserve Chair Jerome Powell. His comments about the economy’s strength and anticipated better-than-expected jobs report boosted investor optimism. But as the month unfolded, caution crept in, especially with key inflation data on the horizon. When the report came out, showing inflation had stalled, the initial optimism faded. Stocks slowed their climb, and treasury yields began to rise. The 2-year treasury note hit a high of 4.2448%, and the 10-year note climbed to 4.3967%.

Gold initially caught investors’ attention, surging on hopes for a Federal Reserve rate cut. But rising producer prices cast a shadow over what was otherwise a positive inflation report, causing gold to give back its gains. Oil prices, meanwhile, moved higher despite supply concerns and geopolitical uncertainties, such as developments in Syria.

As excitement around the US elections faded, rising treasury yields and a less-than-favorable interest rate outlook weighed on stocks. Investors shifted their focus slightly, moving away from economically sensitive sectors toward technology. This helped soften broader market losses, with the tech-heavy Nasdaq managing a modest 0.48% gain. The S&P 500, however, dropped by 2.50%, and the Dow Jones Industrial Average fell 5.27%.

Despite these dips, 2024 has been a strong year overall. Positive economic signals, enthusiasm around artificial intelligence, and Federal Reserve rate cuts drove growth in both the stock and bond markets. Gold continued to rally as price pressures persisted, while oil, though a wildcard amid geopolitical tensions and supply uncertainties, still advanced.

Over in Europe, the European Central Bank cut interest rates by 25 basis points, aiming to support a slowing economy. Specifically in the U.K., the economy shrank for the second month in a row. On the corporate front, Novo Holdings received the green light for its $16.5 billion acquisition of Catalent, while Britain’s Competition and Market Authority approved the merger of Vodafone and Three-UK.

In global headlines, Honda Motors and Nissan Motors entered merger talks, and BYD’s Brazil factory faced delays over working condition concerns.

Closer to Home

In the Caribbean, there were quite a few newsworthy events as well. The Central Bank of Trinidad and Tobago (CBTT) flagged ongoing challenges in the energy sector due to limited natural gas supplies, and the Central Statistical Office reported a 0.5% rise in inflation. Barbados’ IMF funding sparked some concerns about borrowing practices. In

business developments, Caribbean Cement Company forged ahead with its kiln expansion project, West Indies Petroleum spun off its fuel distribution arm, and the Brechin Castle Solar Park is set for completion in 2025. AS Bryden also increased its stake in Caribbean Producers Jamaica, reflecting growing confidence in the region’s opportunities. Angostura Holdings also announced plans to expand its Solera brand, and the CBTT granted provisional registration to e-money issuer WamNow Technologies.

What’s Next?

Markets are always evolving, and while uncertainties remain, there are opportunities for investors locally, regionally and across the globe. At Sheppard, our Wealth Management Team is here to guide you through it all and help you find your place on the investment stage.