We share our latest observations on global asset markets in relation to T8 Energy Vision

The rally in global equities continued in March (+3.0%) although driven by a different range of factors to the prior month (in most cases opposite).

The regional standout was Europe with Germany (+4.6%), the United Kingdom (+4.2%) and France (+3.5%) all outperforming. China (+0.9%) and Hong Kong (0.2%) both lagged global indices.

Growth stocks (+1.7%) underperformed value stocks (+4.8%) and once again market cap was less of a factor although small caps (+3.4%) once again outperformed large cap stocks (+3.1%).

At sector level within the United States market, performance was led by energy (+10.4%), utilities (+6.3%) and materials (+6.2%) driven by the movement in commodity prices with gold (+9.1%), crude oil (+4.6%) and copper (+4.3%) all posting strong gains. The US dollar strengthened (+0.3%) modestly against this backdrop which is counter to its typical inverse correlation to commodity prices.

Bond prices rose modestly across the board (global aggregate bond index +0.6% and US 10-year Treasuries -5bps to 4.2%). The Clean Energy Index (-1.1%) continued to consolidate despite the strength of utilities and the solar sector (+5.1%).