Global equities surged last week, with major indices in the US and Japan reaching new highs, while European equities also posted gains.
Global financial markets experienced notable movements in the past week, with equities rising by 1.5% worldwide. Notably, headline US and Japanese equity indices reached new highs, signaling strong investor confidence. However, the energy market saw a dip as Brent crude fell by 2.2% to $81.6 per barrel, contrasting with a 1.1% rise in gold prices to $2035.4 per ounce.
In Europe, equities surged by 1.4%, with Germany’s GDP quarter-on-quarter meeting expectations. Emerging markets also witnessed positive momentum, with equities rising by 1.2%. Japanese equities performed exceptionally well, reaching new highs and surpassing their 1989 peak. Chinese equities saw a significant uptick of 2.7%, driven by rallying stocks in Hong Kong and mainland markets. However, regulatory concerns emerged as China announced tighter oversight following a major hedge fund’s stock dump.
In the US, equities soared by 1.7%, driven by robust performance in the technology sector, despite markets being closed for President’s Day. The Federal Reserve’s Christopher Waller sounded a note of caution regarding January’s CPI surge, emphasizing the need for prudence in rate decisions. Economic indicators were mixed, with February PMI for Manufacturing and Services slightly missing expectations, while weekly jobless claims came in lower than anticipated. However, January’s Existing Homes sales exceeded forecasts, reflecting resilience in the housing market. Overall, the global financial landscape remains dynamic, influenced by a blend of economic data, geopolitical events, and regulatory developments.
Disclaimer: Past performance is not indicative of future returns. Source: Bloomberg Finance L.P., returns in local currency unless otherwise stated.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity.
