January 2023 Market Update

Overview

A new year brought better fortune to global markets. Inflation falling in-line or more than expected prompted hope that central bank interest rate hikes might soon end. Improving inflation figures were helped by lower energy costs, especially in Europe as demand fell helped by warmer weather.

Market sentiment was also boosted by activity picking up quickly in China after they dropped their COVID restrictions late last year.

During the month, bonds delivered strong returns as future interest rate expectations fell, and equities rallied on the back of improving economic data.

Full update below…