January was a positive but volatile month for global markets. Equity markets rose overall, up 0.9%, supported by better-than-expected economic data, resilient corporate earnings, and easing inflation pressures. Investor confidence improved as growth expectations strengthened, encouraging a shift towards risk assets. However, markets were unsettled at times by heightened geopolitical tensions, renewed tariff threats, and uncertainty around future central bank leadership, particularly in the US. Performance broadened beyond the mega-cap US tech stocks, with smaller companies, Japan, and emerging markets leading gains. Fixed income markets were more mixed, as stronger economic data pushed bond yields higher in some regions. Commodities, especially energy and precious metals, also performed strongly, reflecting geopolitical risks and firmer demand expectations.
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