February market update – developed markets maintained momentum

After a much-needed recovery in January, investors continued to show their love for global equity markets in February. Developed market equities maintained their positive momentum over the month, supported by a more dovish outlook from global Central banks and improvements in US-China trade tensions.

What happened in the markets?

• Chinese equities were also notably strong in February, in contrast to the broader emerging markets, which were the laggards in equity markets
• Another month of higher energy prices was a key driver of positive commodity market returns, while in currency markets, the pound notably strengthened over the month, as expectations of a softer Brexit grew
• A rise in yields towards the end of the month resulted in weaker total returns for government bond markets, but credit markets remained marginally positive overall

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