After posting an impressive 24.4% US dollar return last year, its fourth annual gain of more than 20% since 2017, the MSCI World Index has climbed another 7.7% in the first three months of 2024 to register its best first-quarter return since 2019.

Investors would be forgiven for thinking the best gains have been posted by the S&P 500 index, which has made more than 20 new all-time highs this year, but it is Japan’s Nikkei 225 and Germany’s DAX which lead the way with local currency returns of 20.6% and 10.5% respectively which suggests the rally hasn’t all been about AI (artificial intelligence).

Nor has it been built on enthusiasm over lower interest rates, in fact the opposite is true as expectations of a Federal Reserve rate cut in June have dropped below 50% for the first time due to the strength of the US economy.

While the UK comes a long way down the list in terms of performance, the FTSE 100 topped the 8,000-point mark on 2 April for the first time since February 2023.

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