USA

Year to Date (YTD)

Commentary: The latest US economic data showed that the inflation rate fell faster than expected and is now down to 3%. This figure gives the FED an encouraging sign to partake in its initial rate cut as the latest unemployment rate figure ticked up to 4.1%. Waning economic growth is another concern which may propel the FED to reduce interest rates in the upcoming September meeting. The US stock market maintained its very positive performance with the AI hype supporting the S&P500 index to +18% and the technology focused NASDAQ index +23% YTD.

Europe & UK

Year to Date (YTD)

Commentary: The latest flash estimate from Eurostat expects the latest inflation data to dip to 2.5%. This report indicated that the Eurozone is on the right track to achieve its longer-term inflation target. Unemployment maintained its downward trend and is now at 6.4%. Economic growth is also expected to keep growing at a slow pace with the Euro area poised to grow by just 0.8% in 2024. Uncertainty within the French political system left the CAC40 index up by just 1.8% YTD yet European markets are generally more positively with the Eurostoxx 50 index up 10.2% YTD.

Malta

Year to Date (YTD)

Commentary: Malta’s economy is expected to keep on growing at a brisk pace with more moderate forecasts in the future. The local inflation rate is expected to keep on hovering around the 2.5% mark with budgeted fiscal deficits still being on the higher side. The strong economic growth seen in Malta is likely to aid the country to maintain its Total Debt: GDP around the 50% mark. The unemployment rate has remained stable at 3%. Listed Maltese companies kept on posting generally positive updates with the Malta International Airport achieving yet another milestone with a record number of passengers. However, the general equity market sentiment remained adverse with the Malta based MALTEX down 6.2% YTD.