Monthly viewpoint

Monthly markets review

Overview of markets in January 2018



  • Widespread positive macroeconomic data continued to drive global equities firmly higher in January. Government bond yields rose, reflecting higher growth and inflation expectations.
  • US equities enjoyed a strong advance as economic momentum remained robust.
  • Eurozone equities posted gains; the region’s economic expansion led to some suggestions that the European Central Bank (ECB) could soon end its ultra-loose monetary policy.
  • The FTSE All-Share index fell in January. Large caps and overseas-focused parts of the market performed poorly as sterling strengthened against a weaker dollar.
  • Japanese equities made gains for the month; investors mainly focused on the short-term implications of the Bank of Japan’s dealing in the bond market.
  • Emerging market equities posted a robust return with continued strength in global growth and trade, as well as US dollar weakness, supporting performance.
  • Government bond yields rose significantly, reflecting higher growth and inflation expectations after the US tax reform bill passed in December. Corporate bonds performed well.


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The information in this market outlook is derived from sources which we consider to be reliable. However, it may not in all cases be verified independently and we do not attest to its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Forecasts may be the consensus of extremely divergent possibilities and the full range of potential outcomes should be appreciated. No representation or warranty is made that any value (or proximity to) any value, return or forecast will be achieved. The opinions expressed are those of employees of Schroder & Co. (Asia) Limited, and reflect their judgement at this date and are subject to change. Reliance should not be placed on the views and information in this market outlook when taking individual investment and/or strategic decisions. 

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