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QuotedData’s Investment Companies Roundup – September 2024

Interest rates were the driving force behind markets in August, with the Bank of England finally making its first interest rate cut since it began its hiking cycle in January 2022. In their August meeting, the Bank of England elected to cut rates by 0.25% to 5.0%. And while the US is yet to cut interest rates, Jerome Powell made a formal comment that interest rate cuts were ‘on the cards’. Though the move may be relatively small, it represents a clear shift in direction with interest rate-sensitive assets rallying in response. August also saw the AI story finally begin to lose some of its steam, given the market’s cool response to Nvidia’s strong earnings, which sent ripples through the US and wider technology sector.

In terms of the best performing sectors, the UK property market dominated, given how sensitive the asset class is to interest rates. UK residential property moved the most, likely a reflection of how wide the sector’s discount was going into the month, amplifying its sensitivity to positive news. The rate cuts also had similar effects on the UK healthcare and UK commercial property sectors; though these were also likely supported by an improving outlook for the UK economy as well as the political stability provided by the new Labour government.