On this week’s AHR Market review.
Global equity markets continued their strong start to the year, with nearly all major indices moving higher for the week whilst bonds declined as investors contemplate when central banks may begin cutting interest rates.
In the space of three weeks, slightly negative expectations for the current quarterly earnings season turned solidly positive.
Further suggestion that investors might have to wait for rate cuts came from the UK this week as a labour market update estimated the unemployment rate at 3.9% for the three months through November—lower than the 4.3% that the Bank of England forecast for the final quarter of 2023.
China’s consumer price index fell by 0.8% year on year in January, the fifth month that prices were either flat or falling, raising concerns that a deflationary cycle is becoming entrenched.
US equities increased 1.4%, US technology equities 2.3% for the week, as growth stocks continued to lead the markets rally following a strong quarter four earnings season so far.
The yield of the 10-year U.S. Treasury bond climbed over the week to 4.17%, as Government bond yields continued their rise since the start of the year.
That’s all for this week’s AHR Weekly Podcast. Thank you for listening and for further investment insights head over to ahrprivatewealth.com.