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January market update – a volatile start to the year

Global equity markets started 2018 in the same positive fashion that they ended 2017, with the US market notably strong. However, late January saw a spike in volatility and a fall in equity markets, as European and US bond yields rose to multi-year highs.

Centre Chris Godding
08 February 2018
moved down slightly

What happened in the markets?

  • The movements were largely a result of inflationary concerns and increased investor speculation that global Central banks were set to tighten their monetary policies further, as the global economy continued to strengthen and equity market exuberance reached fresh highs
  • Despite these late movements, US and European equities produced positive returns for investors in January
  • There were also positive returns from Asian and Emerging Market equities, which were supported by another weak month for the US dollar and a solid month for commodity markets. However, UK equities faced headwinds from a stronger pound
Read our market commentary


We hope you have found this update helpful. Please do get in touch on 020 7189 2400 or email if you have any queries or would like more information.

Important information

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. This is not a personal recommendation or advice to invest. Past performance is not a guide to future performance.

Funds may carry different levels of risk depending on the industry sector(s) in which they invest. You should ensure that you understand the nature of any fund before you invest in it.