- Geopolitical risks within eurozone and global growth and deflationary fears heighten market volatility
- Weaker-than-expected US data, growth in fourth quarter of 2014 slips
- China growth for 2014 around 7.5% target
- Russia’s credit rating downgraded by S&P, but country remains very creditworthy
- Central banks retain their ultra-supportive stance
January proved to be volatile across all markets resulting from: the ECB’s quantitative easing decision, the Greek election and subsequent threat on eurozone integrity, further oil weakness and weaker-than-expected US growth. A risk-off tone towards the end of the month saw the yield on the ten-year US Treasury fall 53 basis points to 1.64%, while the thirty-year benchmark yield fell to record lows of 2.22%. Equity markets also sold off with the S&P Index falling 3.10% over the period.