Overview of markets in February 2017

Global equity markets made gains in February. Investors were again encouraged by widespread improvement in global economic data.

US equities performed very well. President Trump promised a “phenomenal” tax plan, although further details are yet to emerge. Expectations rose that US interest rates would soon increase.

In the eurozone, encouraging macroeconomic data supported equity gains. All sectors aside from financials registered positive returns.

UK equities were supported by a variety of factors, including robust corporate results, M&A activity, and positive macroeconomic data. Sterling weakness was a further tailwind.

Japanese equities posted positive returns, supported by a generally encouraging results season for corporates.

Emerging market equities recorded a positive return in February and outperformed developed markets. A number of emerging markets benefited from currency strength.

February proved positive for global sovereign and corporate bonds. The most notable exception was shorter-dated US Treasuries, which were relatively weak, though the 10-year index gained.