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Global Investment MattersExamining Equity Markets

The Benefits Of
'Global Investment Matters'

This weekMovers & Shakersby Alex Harvey CFA

Momentums' time-tested asset allocation process revolves around longer-term relative value opportunities. But when the market MOVEs, you need to MOVE with it.

Market SnapshotsFebruary 20 2024

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• Global equities rose 0.2%

• US inflation figures came in hotter than expected, leading markets to significantly pare back interest rate cut expectations

• Brent crude rose 1.6% to $83.47 per barrel

• Gold fell 0.5% to $2,013.59 per ounce

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Key Global Market Developments

USA

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• US equities fell 0.4%

• The headline Consumer Price Index (CPI) result came in at 0.3% month-on-month (vs 0.2% expected), with the year-on-year value at 3.1% (vs 2.9% expected)

• Headline US retail sales fell 0.8% month-on-month (vs a 0.2% fall expected)

• Industrial production for January came in softer than anticipated, falling 0.1% month-on-month (vs a 0.2% increase expected)

• The headline January Producer Price Index (PPI) rose 0.3% month-on-month (vs 0.1% expected), and 0.9% in year-on-year terms (vs 0.6% expected)

UK

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• UK equities rose 2.1% last week

• UK headline CPI rose 4.0% year-on-year (vs 4.1% expected), while core rose by 5.1% (vs 5.2% expected)

• The economy slipped into a technical recession in the second half of last year, as GDP fell by a larger-than-expected 0.3% quarter-on-quarter in Q4 (vs an expected 0.1% decrease), taking the year-on-year
measure to -0.2%

• Retail sales rebounded in January with volumes increasing 3.4% (vs a 1.5% increase expected) following a 3.2% decrease in December

•Year-on-year house prices declined 1.4% in December, marking the sixth consecutive month of declines

• Industrial production rose 0.6% year-on-year (vs a 0.4% decline expected)

EUROZONE

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• European equities rose 1.3% last week

• Eurozone GDP for Q4 came in flat, while the year-on-year figure showed a 0.1% increase as expected

• Industrial output increased 2.6% month-on-month (vs a 0.2% decline expected)

• Germany ZEW investor expectations for February rose to 19.9 (vs 17.3 expected), but current sentiment fell to -81.7 yesterday (vs -79.0 expected), the lowest reading since June 2020

REST OF THE WORLD

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• Global emerging market equities rose 2.1% last week

• Japanese equities rose 2.6%, while Chinese equities rose 3.7%

• China's services activity expanded at a slightly slower pace in January, as the Caixin services PMI (Purchasing Manager’s Index) edged down to 52.7 from 52.9 in December as new orders
fell

• The Japanese Q4 GDP results came in below expectations falling 0.4% quarter-on-quarter (vs a 1.1% increase expected), up from -2.9% in Q3

Performance Data & Commentary

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