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Multi-asset chart of the week

Multi Asset chart of the week

21 January 2026 Multi-asset
Week to 23 January 2026

Volatility is picking up again after Trump’s new tariff threats against Europe

Stephanie Chan, CFA, Portfolio Manager, said: “Over the weekend, Trump threatened to impose further tariffs on 8 European countries if they continue to block Trump’s attempts to acquire Greenland. Trump maintains that Greenland is essential to the US’ national security. The VIX index, one measure of expected volatility in the market, has increased from recent lows, as the market digests the implications of the new US tariffs and the potential European response. The index is still quite low compared to the level seen in the period following Liberation Day in April 2025. The low level highlights the relative complacency in markets recently and the potential for an uptick in volatility as uncertainty around geopolitics continues to roil markets.”

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Source: Insight Investment, Bloomberg as at 20 January 2026.

Week to 16 January 2026

Broadening equity rally: Not just concentrated in the US and the Magnificent Seven

Jonathan Crone, CFA, Portfolio Manager, said: “For much of the past decade, equity returns were highly concentrated – led by the US, and within the US by the “Magnificent Seven”. Last year marked a change. Leadership broadened: most major regions outperformed the US, especially markets with AI exposure but that were trading at lower valuations. That shift has continued into this year. Regional indices have again held their own versus the US, and within the US the rally has widened – while the Magnificent Seven have lagged the broader market. The equity outperformance has ultimately been driven by earnings: the US – and the Magnificent Seven – delivered superior earnings growth over the last 10 years. This year’s reporting season will be crucial. The key question: can the recent catch‑up outside the US and beyond the mega-caps be sustained by earnings?”

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Source: Insight Investment, Bloomberg as at 12 January 2026.

Week to 09 January 2026

Global equities rallied in 2025 while the US dollar declined

Stephanie Chan, CFA, Portfolio Manager, said: “Despite the volatility in markets seen in April 2025 around Liberation Day and Trump’s announcement of new global tariffs, equity markets reached new all-time-highs in 2025, with the MSCI World developed market equity index gaining almost 20% over the year. Remarkably, global equities outside the US outperformed US equities despite the recent focus on AI and large capex spend by US tech companies. Meanwhile, the US dollar weakened in 2025, amidst expectations of further cuts from the Fed and some political and economic uncertainty in the US. Additionally, some markets outside the US offered improving fundamentals and more attractive valuations relative to the US.”

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Source: Insight Investment, Bloomberg as at 31 Dec 2025.

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