| Global Stocks | US Stocks | UK Stocks | EU Stocks | EM Stocks | Japan Stocks | Gilts | GBP/USD |
| -0.4% | -1.6% | +0.7% | +0.5% | +3.3% | +5.9% | +1.0% | +0.3% |
Market update
US equities finished the week -1.6% lower as market leadership continued to rotate away from growth and into more defensive areas like utilities. Early in the week, risk sentiment was affected by weaker than expected US retail‑sales data alongside further volatility in sectors perceived as “AI losers,” including parts of the financial sector. By Friday, a softer than expected US inflation print lifted the equities market but did not reverse the week’s earlier weakness. UK equities were +0.7% higher, supported by index composition and relative resilience in non‑technology sectors, in particular utilities and healthcare, despite weakness in parts of the banking sector during the week. Emerging Market equities grew +3.3% and Japanese equities saw record highs after a +5.9% increase by the end of the week.
Weaker than expected US retail sales, initially supported government bonds and pushed yields lower. Mid‑week, the tone briefly reversed after the January non-farm payrolls report surprised to the upside, prompting a move higher in yields. That uptick faded as weekly jobless claims came in slightly higher than expected. Finally, softer than expected US inflation at the end of the week helped lower the yields into the close, leaving the 10‑year Treasury -15 basis points lower. UK 10‑year gilt yields broadly tracked this movement and ended the week -10 basis points lower as well.
Gold rose by +1.4% over the week, supported by a combination of lower yields and a continued preference for defensive assets amid equity volatility. Conversely, oil prices fell by -1.4% as the market weighed a shift in supply expectations and a reduction in immediate geopolitical risk premia during the week.
Macro news
UK GDP grew by just 0.1% in Q4 2025, matching Q3’s growth and falling short of expectations for 0.2% growth. Annual GDP growth for 2025 is estimated at 1.3%, up from 1.1% in 2024. The BoE expects GDP growth of just 0.9% this year.
The US labour market started 2026 on a solid note, with 130,000 jobs added in January, the unemployment rate dipping to 4.3%, and average hourly earnings rising 0.4% (3.7% YoY), signalling accelerating wage momentum.
