January 2024 Market Update

Overview

Global markets produced a third consecutive month of gains, rising 1.6% (GBP). Several data releases indicated the ongoing robustness of the US economy, contrasting with China’s challenges.

Japanese equities top-performed in January with 7.8%, assisted by a depreciating Yen. However, the Hang Seng index of Chinese enterprises listed in Hong Kong is the worst-performing major benchmark globally this year (down 9% year-to-date) as global investors continue to show caution on Chinese growth.

Inflation levels unexpectedly picked up in the US, UK and Eurozone, pushing back expectations for rate cuts. Government bonds responded, with UK 10-year rates rising 0.26% over the month, while US rates rose 0.05%. Real estate stocks struggled (likely influenced by higher rates) while energy prices rose on a firmer demand outlook.

Full update below…