Chapters
Global equities
February continued along similar lines to January. Investors concentrated on the growth risks in the US and continued to question whether high earnings expectations and elevated valuations – especially the tech megacaps – were justified. Market leadership broadened for a second month, with Europe putting in another stellar performance, while there was continued positive momentum in Chinese tech stocks, helping emerging markets outperform their developed market peers.
The uncertain final destination for US tax and tariff policies – and their inflation and growth implications – continued throughout the month. President Trump confirmed that the tariffs on Canada and Mexico would still go ahead, leading to a fresh sell-off as investors faced up to the prospect of an imminent adjustment and lifted their inflation expectations for the year. Turning to sectors, consumer staples and real estate were the major outperformers, with consumer discretionary and communication services and IT the key laggards.
| Indices (total return in local currency) | |
|---|---|
| S&P 500 | -1.3% |
| Nasdaq Composite | -3.9% |
| MSCI ACWI | -0.6% |
| Nikkei 225 | -6.1% |
| EuroStoxx 600 | 3.3% |
| FTSE 100 | 2.0% |
| Hang Seng Index | 13.4% |
| SSE Composite | 2.2% |
Source: Bloomberg as at 28 February 2025.
