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06.02.2015 16:03:29

Monthly markets review - January 2015

Schroders Monthly market review on Axel Springer

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Monthly markets review - January 2015

February 2015

Market Views, Schroders

A look back at markets in January 2015, which saw the arrival of eurozone quantitative easing and a disappointing earnings season in the US.

  • Global equities as measured by the MSCI World index registered negative returns in January in dollar terms, largely due to weaker performance from US equities. Commodity prices continued to fall with Brent crude oil dropping below $50/barrel.
  • US equities posted negative returns amid a downbeat fourth quarter earnings season, with many companies citing concerns over the impact of the strong dollar.
  • Eurozone and UK equities were supported by the European Central Bank's (ECB) announcement of a programme to purchase sovereign bonds which exceeded market expectations. Eurozone equities, in particular, gained strongly. Swiss shares experienced turbulence as the central bank dropped the franc's peg to the euro.
  • Japanese equities posted a small positive return. Employment figures showed improvement but inflation data was below expectations, largely due to the lower oil price.
  • Emerging markets made modest dollar-denominated gains. India was the best performing market as the central bank made a surprise rate cut. China posted positive returns. Fourth quarter GDP was slightly stronger than forecast at 7.3%.

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Schroders Switzerland

Important Information:

The views and opinions contained herein are those of the authors and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds.
For press and professional investors and advisors only. This document is not suitable for retail clients.
This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. The data has been sourced by Schroders and should be independently verif�ed prior to further publication or use. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Schroders has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system.
 
Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them can go down as well as up and investors may not get back the amount originally invested.  Changes in exchange rates can also cause the value of investments in currencies.   Investments in emerging markets can involve a higher degree of risk. Less developed markets are generally less well regulated than the Switzerland, investments may be less liquid and there may be less reliable arrangements for trading and settlement of the underlying holdings.
Issued by Schroder Investment Management (Switzerland) AG, Central 2, CH-8001 Zurich which is authorised and regulated by the FINMA.
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