Market review february

  Markets on a knife edge

The financial markets seem to be walking on a tightrope, suspended above the void and buffeted by the various announcements of the month. The Ukraine war and inflation statistics are causing the main asset classes to blow hot and cold, and they are giving up some of the previous month's gains.

Equities, after a very good start to the year, are down. The stocks that had performed best in 2022 are the most affected by this return of pessimism. The opposite is true for technology stocks that are doing well. Pharmaceutical and Swiss stocks are the main victims of this early year movement. Europe benefits from a significant banking exposure in the construction of its index.

Interest rates have started to rise again, which has a strong negative impact on bonds. Swiss real estate nevertheless posted a positive performance. Currencies have remained stable since 1 January pending further decisions on interest rates.

Commodities are continuing their January decline and precious metals are giving back some of their initial gains.

The overall risk indicator stabilises at a low level. The only component with a high risk is the commodities indicator.

MAIN performances

XO Risk Aversion Index - Composite 250D

XO Risk Aversion Index - Components