The American market – as the lowest performing region – climbed six percent in January despite discussions of recession picking up. Still, the market was positive because of a variety of factors, such as easing inflation numbers, strong job market reports and whispers of easing financial conditions based on the potential for less aggressive central bank policy.
European stocks increased a bit more than seven percent in January. A key driver of this performance is the expectation – or hope rather – that leading central banks will slow their interest rate increases, either in terms of actual tightening or a slower pace of tightening, which will create a more attractive business environment than currently.
Asia 7.8%, Emerging Markets 7.9%.
Both the Asian and Emerging Market regions were supported by a strong performance in China after ending it’s lockdown-heavy zero COVID policy, despite more muted performance in the days after being closed for Chinese New Year.