This week’s Weekly Market Review highlights recent inflation data for January, with US inflation slowing again to a rate of 3.1% from the December rate of 3.4%. However, this was ahead of the anticipated rate of 2.9% and dampened sentiment around early interest rate cuts. Key drivers were lower energy costs, falling 4.6% on an annual basis, while food prices accelerated by 2.6%.
In Europe- Eurozone GDP figures for Q4 2023 were released with growth flat at 0% and the bloc avoiding a technical recession. While there was no growth in Q4, employment figures rose by 0.3% and by 1.3% year on year.
In Asia-Pacific: There are early signs that the flagging Chinese economy will recover. In recent weeks, European investors have increased their exposure to China indirectly, by investing in luxury goods indices in Europe where companies such as LVMH, Christian Dior and Ferrari derive c25% of their earnings from China.
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