February 2024 Market Update

Overview

Fuelled by robust economic data, global markets achieved positive performance for the fourth consecutive month in February, delivering a 4% overall gain for Sterling investors. The standout performers were US stocks (+5.1%), led by the ‘Magnificent Seven’ tech giants and notably Nvidia, propelled by significant interest in AI.

Japanese stocks continued to perform well while Emerging Markets stabilised after a weak period. The UK however fell 0.2% over the month as the economy continued to struggle and companies looked to switch exchange listings to better performing markets elsewhere.

Buoyed by improved economic data, expectations for interest rate cuts have shifted backwards, with commentators now speculating cuts will not happen until the latter half of 2024. As a result, bond yields once again climbed over the month, with 10-year yields rising by 0.33% and 0.34% in the UK and the US, respectively.

Full update below…