Market Pulse - January 2022
- Monthly Market Pulse
- 28.09.23
Key themes
Global equities fell over January in their worst month since March 2020
The US Federal Reserve suggested a faster pace of policy tightening than was expected
Political tensions rose over a possible invasion of Ukraine by Russia
Markets snapshot
The MSCI AC World equity index fell -4.6% (-3.5% in euro terms).
The US underperformed and fell -5.7% (-4.3% in €) on the back of more hawkish guidance from the Federal Reserve (Fed) and the sharp move higher in bond yields.
The UK rose 1.9% (2.4% in €), benefitting from its relatively large weight in energy and material stocks, which were supported by higher commodity prices.
Emerging markets outperformed, falling -1.8% (-0.5% in €), and were helped by policy loosening in China, which should support growth, and attractive relative valuations compared to global equities.
The Eurozone >5-year bond index fell -1.5% as bond yields rose on more hawkish policy guidance by the Fed.
The euro fell to 1.1219 against the US dollar, with the dollar rising on expectations of faster policy tightening.
Commodities rose +11.6% (+13.3% in €), with WTI oil up +17.2%. Commodity prices were firm on concerns over the Russia/Ukraine crisis, with Russia being a significant producer of several commodities.
Gold fell -1.8% as real yields rose.