US stocks rallied, while Europe and China lagged. Strong performance of the US economy in 2023 and Fed’s ongoing success in fighting inflation has boosted US equities. In contrast, Europe and China have underperformed their initial economic growth forecasts, which has had a strong impact on markets. Chinese stocks have struggled especially this year, as lower-than-expected growth, struggling real estate sector, and risks of worsening trade relationship with the US have all played their part. Lastly, the renewed Palestine-Israeli conflict is a new headwind that capital markets have recently priced in.