Monthly Income monthly commentary - February 2025

In February, global markets experienced mixed performance with global equities posting a 1.9% loss overall. US equities faced challenges due to policy uncertainties, while European equities saw strong performance, driven by gains in financials and defence stocks. Elsewhere, emerging markets equities benefited from the positive sentiment around Chinese tech stocks and a weakening US dollar. Meanwhile, fixed income markets saw gains as US Treasury yields declined in the face of softer economic data, with global bonds providing diversification against equity losses. Overall, the month highlighted the importance of diversification and the varying impacts of regional and sector-specific factors on market performance.