LONDON, March 28 Reuters Global bond and equity markets are ending the first quarter on a high, with investors poised for more wild swings after months of lurching between optimism and pessimism about prospective rate cuts from major central banks.

MSCI39;s global share index, which struck record highs in March, has risen almost 10 since midJanuary after traders dropped earlier bets for as many as seven U.S. rate cuts in 2024 and instead embraced the idea of cuts starting in June.

After Switzerland surprised with a rate cut last week, traders almost unanimously expect the Federal Reserve to lower U.S. borrowing costs from 23year highs in June and the European Central Bank to cut its deposit rate from 4 then too.

Dennis Jose, head of equity strategy at Exane BNP Paribas, said that even if the Fed and the ECB lower borrowing costs around the middle of the year, they could pause if economic growth improves, jobs markets tighten and wage growth reignites inflation.

I think it may be better to travel than arrive at that first rate cut, he said.

Equity and bond markets show too much complacency, said Joe Kalish, chief global macro strategist at Ned Davis Research. It wouldn39;t take the data to move much in either direction to upset the consensus.

EVERYTHING RALLY

As March closes, however, the hares are still running.

A global government bond index posted its first monthly gain of 2024 in March as the quarter39;s rally became a buyeverything frenzy, sending Japanese…