Japan, the US and the UK led major stock markets last week after positive noise
over future interest rate policy. Japan increased interest rates for the first time
since 2007. In the US and UK, central banks continued to signal to investors that
interest rate cuts could soon be on the horizon.
Market returns were mixed over the last week as prices of goods and services
stopped falling in China for the first time in half a year. Whilst Japan narrowly
avoided a technical recession, the UK economy shows signs of a recovery from its
recession experienced in the second half of 2023.
Market returns were mixed over the week with only a few major stock markets rising
in value. The big stories of the week included the European Central Bank’s latest
meeting where positive noises were made over a reduction in interest rates and the
Spring Budget announcement in the UK.
Strong earnings results from a range of companies helped to push stock markets to new highs.
Read our full update here.
Stock markets around the world have hit record highs, while bond values have fallen back slightly.
Market-moving events
Investment highlights
Asset allocation
For the month of March, we cover:
Another decent week for equity markets with most major stock indices finishing
higher. Highlights included reassuring inflation data out of the US and continued
strength from Japanese equities after comments from the Bank of Japan’s
governor. Stickier inflation data in Europe disappointed investors with mixed returns
across stock indices in the region.
Another strong week for markets with big stories coming out of US chipmaker
NVIDIA, which boosted markets globally. Increased consumer activity during
China’s Lunar New Year holiday boosted investor sentiment and a return to steady
growth in Japan helped Japanese stocks continue to strengthen. Meanwhile, mining
and energy stocks keep the FTSE 100 subdued this week.
The UK fell into recession during the final three months of 2023, after the economy shrank by more than expected. We explore what recessions usually mean for markets and why it’s a good idea to stay invested regardless of the news.
US Stocks were the outlier last week as the only major stock market falling in value.
Discouraging inflation data in the US challenged stock markets however signs of
cooling inflation in Europe and UK buoyed stock prices. Central banks continue to
try and tame investor expectations on interest rate reductions as rebounding
inflation still remains a big risk in decision making.
Market returns were generally strong over the week as stocks in the US and Japan
reached new highs. Gains in some markets were capped however as central banks
reiterated their intentions to be careful over interest rate cuts, suggesting that they
may keep interest rates higher for longer to avoid a rebound in inflation.
Markets pick up after a shaky start to the year
The US economy remains robust even though interest rates remain higher than they’ve been for years.
Markets are adjusting to expectations that interest rates may not begin to fall until later in the year.
For the month of February, we cover:
Market-moving events
Investment highlights
Asset allocation
Market returns were mixed over the last week as labour market data in the US
surprised on the upside whilst Europe narrowly avoided a recession. Chinese
markets suffered their largest weekly fall in over 2 years as investor pessimism
about the economic growth outlook heightens.
Optimism that interest rate rises are finally over have boosted stock and bond markets.
Read the full update in our latest Market Update