Globally, equity markets were positive in January. In the US, the S&P 500 rose +2.7%, the Nasdaq increased +1.6%, whilst in the UK, the FTSE was up strongly, rising +6.1%.

Domestically, the ASX All Ordinaries Accumulation index outperformed its US peers, rising +4.4%. On the ASX, the top performing sectors were gold and financials, whilst defensive sectors such as utilities and telecommunications underperformed. A subdued inflation data point in Australia released in late January boosted investor sentiment, increasing the likelihood of the Reserve Bank of Australia (RBA) cutting rates in the near term. Bond markets were relatively quiet in January. The US 10 year government bond yield was slightly up (~ +2 basis points) to close at 4.53%, whilst in Australia, the 10 year bond yield increased +6 bp to close at 4.43%.