Q3 was a story of interest rates, currencies and a presidential election race. The Federal Reserve (the Fed) and Bank of England (BoE) began their rate cutting cycles, following the European Central Bank’s (ECB) June rate cut.
These cuts caused the USD to fall against other major currencies, particularly the Japanese Yen (JPY). It also weakened by more than 5% against the British pound sterling (GBP), impacting the value of USD-denominated stocks.
The quarter also saw President Joe Biden’s exit from the 2024 US presidential election, replaced by Kamala Harris. Her candidacy boosted the prospects of the Democrats remaining in the White House. This could benefit decarbonising policies and companies in this sector.
Hear from our chief investment officer, Fred Kooij, as he digests the actions of the central banks this past quarter, some of the big movements in currencies off the back of interest rate cuts and what this most recent rate cutting cycle could mean for stocks and bonds.
