Quilter Cheviot|Weekly Comment

Cooling inflation and consolidated market gains

Our Weekly Market Overview from Quilter Cheviot

by Alan McIntosh, Chief Investment Strategist

Global equities paused to take stock last week following a strong start to the new year, with the MSCI All Country World Index sliding 0.3% and paring the year-to-date gains slightly to 5.2%. Softer economic data weighed on sentiment a little as retail sales figures in the UK and US came in worse than expected, while hawkish rhetoric from European central bankers also kept any signs of over-exuberance in check.

For the month of December, US retail sales declined 1.1% for the largest month-on-month decline in a year. On the day of the release, US large-cap stocks posted their largest one-day fall in over a month while US Treasuries rallied, and the US dollar traded down to a seven-month low. It would be folly to draw too many conclusions from a single, and volatile, data point, but other figures do also point to a general slowdown in US economic activity…

The value of your investments and the income from them can fall and you may not recover what you invested.

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