In the February issue, we look at why it’s been a rocky start to the year for stock markets. Can stimulus from the Chinese government reverse the tide for global stock markets?
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Fears over rising rates, geopolitical tensions and inflation have seen a rocky start to the year for markets. However, help may be at hand, with the Chinese government set to loosen monetary policy in the face of flagging growth.
In the meantime, there has been a sharp rotation from growth areas, such as technology, into value sectors such as financials and energy. This has been bad news for the US market, but good news for the UK, which recorded its best relative monthly gain over global peers for more than 20 years.
Challenges persist for global stock markets. Inflation remains the most immediate concern, with energy prices likely to remain elevated as environmental policies make fossil fuels more expensive by restricting supply. This will determine the direction of US interest rates over the coming months. Expect equities to be volatile as central banks grapple with these problems.
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
Please remember investment involves risk. The value of investments and the income from them can fall as well as rise and investors may not receive back the original amount invested. Past performance is not a guide to future performance.