World stock markets have shown resilience, absorbing the impact of a robust U.S. jobs report for January and moderated expectations for Federal Reserve rate cuts. Despite downward revisions to 2025 payrolls, last month’s 130,000 payroll gain nearly doubled forecasts, and the unemployment rate unexpectedly dropped to 4.3%. This labour market stabilisation allows the Fed to maintain focus on its inflation mandate, which remains above target. The U.S. Consumer Price Index (CPI) report now takes centre stage.
U.S. and global markets remained relatively steady. Wall Street futures saw gains, European stocks reached new highs, and U.S. Treasury yields generally settled within recent ranges. China’s offshore yuan experienced a surge, reaching new three-year highs. In Europe, corporate earnings were generally positive, overshadowing the EU’s summit on economic reform and competitiveness.
In corporate news, British money manager Schroders saw its shares jump by 29% following Nuveen’s acquisition announcement for £9.9 billion (approximately $13.5 billion). Schroders is a global asset and wealth management firm, offering investment solutions to individuals, institutions, and corporations. Nuveen is a U.S.-based asset manager, providing investment strategies across various asset classes and geographies. The deal marks one of Europe’s largest fund management transactions ever, signifying a potential shift towards value stocks and markets, with the relatively inexpensive UK market attracting global investors.
