In the US, 4Q2023 GDP growth was revised 0.1 percentage point lower to 3.2% q-o-q seasonally-adjusted annualised on account of lower inventory investment, but resilient consumer services and strong government spending remain intact. Risk assets have performed relatively well of late.
The theme in our Singapore credit outlook for 1H2024 was to “buy while rates are still high”. This was based on expectations that the higher-for-longer rates narrative was closer to coming to an end, and that stable to lower rates could improve risk sentiment and benefit risk assets in 2024.
Although rates have been somewhat volatile so far in 2024 (and US Treasury yields are higher than they ended 2023 as of the time of writing) and economic cues remain skewed (China’s official manufacturing Purchasing Managers’ Index or PMI shrank for the fifth consecutive month in February, whereas the non-manufacturing PMI rose to 51.4, aided by a travel boom during the Lunar New Year holidays).
