Monthly markets review - January 2017
A look back at markets in January 2017 when US equities hit fresh highs but other regions were more mixed.
6 February 2017
- Global equity markets gained ground in January in US dollar terms. Despite some doubts emerging late in the month, hopes of expansive fiscal spending in the US persisted, prompting further gains.
- US equities registered positive returns with major indices hitting new all-time highs amid optimism over President Trump’s plans for tax cuts and higher infrastructure spending.
- In the eurozone, macroeconomic data was encouraging but equities posted negative returns. Energy was the weakest sector while information technology was the only sector to register a positive return.
- UK equities were slightly negative as oil & gas stocks succumbed to some profit-taking and healthcare stocks suffered amid uncertainty over the US drug pricing outlook.
- Japanese equities recorded a narrow positive return. The yen gained ground against most major currencies in January. Investors continued to prefer more economically-sensitive areas of the market.
- The MSCI Emerging Markets index recorded a strong gain, supported by US dollar weakness. Higher industrial metals prices were beneficial for Latin American markets.
- Global bond markets diverged in January, a theme expected to persist in 2017. A stable US Treasuries market contrasted with higher yields in Europe, where inflation jumped again.
Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change. To the extent that you are in North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc and SEC registered adviser providing asset management products and services to clients in the US and Canada. For all other users, this content is issued by Schroder Investment Management Limited, 31 Gresham Street, London, EC2V 7QA. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.