Weekly Market Update: 12th February 24
By Joseph Spiers
Read our weekly market update for the week starting 12th of February 2024.
Financial markets have continued to respond to changing expectations around interest rates, economic growth and inflation, with investors assessing developments across the US, Europe and Asia.
So, what happened across the major markets, and what could these developments mean for investors?
US Markets: A Rally Fuelled by Optimism
US markets surged this week, buoyed by hopes that the Federal Reserve is nearing the end of its tightening cycle.
The S&P 500 climbed 0.59%, with technology stocks leading the charge as investors responded positively to solid corporate earnings from major companies such as Apple. Meanwhile, the Dow Jones Industrial Average gained 0.49%, marking its best weekly performance in months.
A standout moment was the release of November's jobs report, which showed moderating wage growth. This reinforced the Federal Reserve's soft landing narrative, helping to energise markets and fuel positive sentiment across sectors.
Europe: Resilience Amid Challenges
European markets demonstrated resilience despite ongoing economic uncertainty.
The FTSE 100 in the UK edged up 0.1%, led by gains in energy and financial stocks. Across the continent, Germany's DAX Index also saw strong performance in the automotive sector, supported by upbeat forecasts from major manufacturers.
The European Central Bank (ECB) indicated that it expected to maintain rates at current levels into 2025, citing lower-than-expected inflation in November. This more accommodative tone provided some relief to investors.
Asia: Mixed but Promising Trends
Asian markets experienced mixed performance this week, with China and Japan among the key markets attracting investor attention.
While conditions remained varied across the region, the overall picture was one of cautious optimism. Investors continued to assess economic developments and the potential impact of global interest rate decisions on Asian economies.
China and Japan remained important areas of focus as investors considered the region's growth prospects and the wider global economic outlook.
How can you prepare your finances for the new tax year?
With the year-end approaching, there are several areas investors may want to consider as part of their wider financial planning.
This could include making the most of ISA contributions, reviewing available pension carry-forward allowances and considering estate planning.
It may also be an appropriate time to review your investment portfolio. Checking your diversification, tax efficiency and long-term alignment can help ensure your investments remain consistent with your financial objectives.
How could a financial adviser help?
If you're reviewing your finances ahead of 2025, speaking to a financial adviser could help you assess your wider financial position.
An adviser can help you review your investments, pensions and tax planning, while considering how your portfolio is positioned for your longer-term objectives.
Use our free matching service to find a financial adviser who can help you review your financial plan and make the most of the opportunities available to you.