In February, the German and European stock markets in particular rose, as did the majority of Asian stock markets, while the Japanese benchmark index reached an all-time high. The broad US stock market and the index for the US technology sector showed a positive, albeit weaker, trend.
Looking at the overall economic situation, it is noticeable that the US economy continues to demonstrate strength. Economic data from recent weeks suggests that domestic demand and investment activity, particularly in the areas of technological infrastructure and artificial intelligence, are more than compensating for the moderate decline in other sectors. The US Federal Reserve (Fed) is adopting a wait-and-see approach, which is primarily characterized by concerns that a premature easing of interest rate policy could jeopardize progress in the fight against inflation.
On the equity markets, the focus remains on high-quality companies with strong balance sheets and clear pricing power, while more speculative growth narratives come under pressure as soon as they are confronted with disappointing quarterly figures or a revision of margin forecasts.
Geopolitical tensions, particularly in the Middle East, and the associated concerns about energy supply, have led to increased volatility in commodities and shifts in risk assessment in the final days of the month. The market reaction following the attack by the USA and Israel on Iran on February 28 is not yet reflected in the key figures.
February was also a strong month for the bond markets. US and eurozone government bonds performed consistently month-on-month. Yields on 10-year US government bonds fell by 30 basis points at the end of the month, closing at 3.94%. Yields on 10-year German government bonds fell by 20 basis points from 2.84% to 2.64%. The yield on 10-year Italian government bonds fell by 18 basis points.
There was also a uniform picture for corporate bonds. Yields on investment grade euro bonds fell to 3.10%, while yields on their US dollar counterparts closed 11 basis points lower at 4.73%. In the high-yield segment, yields on US dollar corporate bonds rose by 13 basis points to 6.71% and on euro-denominated bonds by 6 basis points to 5.43%.
The price of gold rose more strongly, particularly towards the end of the month, against the backdrop of rising geopolitical risks. It closed at USD 5,277 per ounce. The US dollar moved sideways and stood at 1.181 at the end of the month.
Legal information
Marketing advertisement: All information published here is for your information only and does not constitute investment advice or any other recommendation. The statements contained in this document reflect the current assessment of DJE Kapital AG. These may change at any time without prior notice. All statements made have been made with care in accordance with the state of knowledge at the time of preparation. However, no guarantee and no liability can be assumed for the correctness and completeness.