ETFs have steadily grown since their inception in North America in the 1990s, with introductions in Asia in 1999 and Europe in 2000. Currently, there are around 12,000 ETFs listed globally, holding around $13.0 trillion in assets. The Americas, mainly the US, remain the largest ETF market, comprising 72 percent of global ETF assets under management (AuM). Europe and Asia account for 16 percent and 12 percent of the global ETF AuM, respectively (Source: JP Morgan 2024).

A 60% debt-to-GDP ratio and a 3% annual deficit limit, these are the two fiscal benchmarks included in the EU treaties to ensure countries maintain sound public finances. Today, the total debt-to-GDP ratio in the Eurozone stands at 89%, with major economies like France and Italy even having ratios higher than 110%. Looking forward, what does this escalation mean for future fiscal policy in the Eurozone, and what are the implications for markets?

Global investors have focused intently on inflation and interest rate expectations over the last few years. In this article, we take stock of equities’ sensitivity to changes in interest rates and inflation expectations. We note a couple of exceptional findings regarding today's sensitivity compared to the last few decades.