Global equities rose by approximately +3.4% in Sterling terms in February, while global bonds gained around +1.4% (hedged back to pounds). This was driven by strong outperformance from government bonds while riskier high-yield bonds were more muted. A result of the combination of steady economic data and resilient corporate earnings supported risk appetite across regions.
Emerging markets were among the strongest performers, rising roughly +7.7%. Much of the strength came from Asia. Technology-heavy markets such as Taiwan performed particularly well, and South Korea benefited from shortages in the memory and semiconductor industry. Evidence of inventory rebuilding and stabilising demand helped lift confidence across the broader technology supply chain.
Japan was a standout market in February. Japanese equities rose by around +10.8%, and the yen strengthened at the same time. In recent years it has been uncommon for the country’s stock market and currency to appreciate simultaneously, and this typically reflects rising investor confidence. During the month, Japan’s Prime Minister called a general election and secured support for her economic reform agenda. The resulting political clarity was viewed as supportive for corporate profitability and longer-term structural reform.
The UK also delivered strong gains, with the FTSE All-Share rising approximately +6.5%, and Continental European markets similarly posted solid returns. In contrast, US equities (+1.3%) saw more moderate gains. While the broader market moved higher, parts of the technology sector, particularly software and software-as-a-service (SaaS) companies, underperformed as investors viewed their business models as somewhat open to disruption by rapidly advancing AI coding capabilities.
Geopolitical tensions in the Middle East increased toward month-end, contributing to short-term volatility and firmer energy and commodity prices. Nevertheless, these developments did not materially alter the overall positive direction of global markets in February and nicely illustrated the benefits of a very diversified approach.
All performance figures are stated in Sterling terms, unless otherwise specified.
Any opinions stated are honestly held but are not guaranteed and should not be relied upon.
The information contained in this material is for information only and is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products.
All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete.
Home / News / Market commentary / YOU AM market commentary: February
YOU AM market commentary: February
Global equities rose by approximately +3.4% in Sterling terms in February, while global bonds gained around +1.4% (hedged back to pounds). This was driven by strong outperformance from government bonds while riskier high-yield bonds were more muted. A result of the combination of steady economic data and resilient corporate earnings supported risk appetite across regions.
Emerging markets were among the strongest performers, rising roughly +7.7%. Much of the strength came from Asia. Technology-heavy markets such as Taiwan performed particularly well, and South Korea benefited from shortages in the memory and semiconductor industry. Evidence of inventory rebuilding and stabilising demand helped lift confidence across the broader technology supply chain.
Japan was a standout market in February. Japanese equities rose by around +10.8%, and the yen strengthened at the same time. In recent years it has been uncommon for the country’s stock market and currency to appreciate simultaneously, and this typically reflects rising investor confidence. During the month, Japan’s Prime Minister called a general election and secured support for her economic reform agenda. The resulting political clarity was viewed as supportive for corporate profitability and longer-term structural reform.
The UK also delivered strong gains, with the FTSE All-Share rising approximately +6.5%, and Continental European markets similarly posted solid returns. In contrast, US equities (+1.3%) saw more moderate gains. While the broader market moved higher, parts of the technology sector, particularly software and software-as-a-service (SaaS) companies, underperformed as investors viewed their business models as somewhat open to disruption by rapidly advancing AI coding capabilities.
Geopolitical tensions in the Middle East increased toward month-end, contributing to short-term volatility and firmer energy and commodity prices. Nevertheless, these developments did not materially alter the overall positive direction of global markets in February and nicely illustrated the benefits of a very diversified approach.
All performance figures are stated in Sterling terms, unless otherwise specified.
Any opinions stated are honestly held but are not guaranteed and should not be relied upon.
The information contained in this material is for information only and is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products.
All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete.