After $14 trillion was wiped off world shares in 2022, $4 trillion has been added back this month. China’s relaxation of COVID-19 restrictions has powered Hong Kong’s Hang Seng Index to double-digit gains, while Europe’s Stoxx 600 share index enjoyed its best start to the year on record.
Widespread optimism has rewarded investors who took a chance on buying a U.S. junk bond index with a total return of more than 5% this month. Electric car maker Tesla’s shares have jumped 44%, copper prices have surged and the tech-dominated U.S. Nasdaq 100 has had its best January since the dotcom boom
At the other end of the spectrum, ultra-safe U.S. Treasuries and German Bunds have put in some of their strongest January performances since 2008, according to Datastream calculations. That followed tentative signs inflation has peaked and that central banks will soon pause rate hikes, with markets now pricing a just-right outcome of borrowing costs getting cheaper, while…
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