The Nikkei 225 index, Japan’s main stock market index, reached a new all time high as it surpassed its value seen at the end of the 1980s.
US inflation cooled less than expected in January with it coming it at 3.1 per cent year on year. Despite being lower than the 3.4 per cent figure seen in December, it missed economist expectations of 2.9 per cent.
The start of 2024 has delivered a mixed bag in terms of returns. Developed equity markets were generally positive, (except for the UK), while it was a much tougher start to the year for emerging markets, which sold off in the region of -4.0%.
Sir Keir Starmer announced that Labour has slashed its headline green spending plan from £28bn annually to just £4.7bn in a major U-turn ahead of the election later this year.
The Bank of England held interest rates at 5.25 per cent but hinted that it may be ready to consider cutting rates for the first time since inflation surged.
December was a “sea of green” with the majority of assets delivering positive returns. Markets were buoyed by the cooling of inflation and expectations for dovish monetary policy in 2024.