Equities

Major US indices weakened again, with the Nasdaq underperforming, despite robust quarterly earnings. European bourses rallied on strong corporate data, with cyclicals outperforming. Japan made gains, despite an extension of the Covid-related quasi state of emergency. China’s indices rose, boosted by the perception that the regulatory clampdown might have peaked.

Bonds

The yield on the benchmark US 10 year Treasury bond topped 2% for the first time since 2019, as short rates jumped sharply and the yield curve flattened. Eurozone government bond yields also climbed, as prices fell, as European Commission inflation forecasts were raised. Both investment grade and high yield bonds tracked equities lower after the US January CPI number was announced.

Currencies

Sterling made ground, although the euro was weaker across the board. The US dollar managed gains against both the euro and the yen, which made small advances against the euro.

Commodities

The oil price touched a seven year high of almost $95 per barrel, as geopolitical tensions mounted. Gold proved a safe haven, rising 2.8% on the week.

Responsible investing

Fund data provider Morningstar has cut 1,200 funds, with a total value of $1.4 trillion, from its sustainable list after finding ‘ambiguous language’ in legal filings.