Inside the markets | Helping you guide clients

Your monthly guide to last month’s market events and what this could mean for your clients. Inside the Markets goes beyond headlines to break down the month’s most important multi-asset movements and what they mean for investment decisions.

February delivered a mix of geopolitical tension, commodity volatility, and shifting policy landscapes. Gold and silver staged a solid recovery, oil markets surged on supply disruptions, and new US tariff developments injected fresh uncertainty into inflation expectations. With central banks diverging and investor sentiment shifting quickly, adaptability and diversification remain essential tools for navigating the months ahead.

Commodities rebound strongly as February closes

• Gold surged 8.5% in February, reversing the steep decline seen in late January. Prices closed the month at approximately $5,275 per ounce.
• Silver climbed almost 11%, ending near $94 per ounce, though still below its $115 January high.

Geopolitical stress drives sharp moves in energy markets

• Brent crude rose from $72 per barrel on 27 February to around $79 by 2 March following missile strikes.
• The disruption of the Strait of Hormuz forced shipping companies to reroute vessels, signalling broad supply‑chain impacts.
• Traders responded swiftly to increased tensions, pricing in heightened uncertainty and potential supply shocks.

Supreme Court strikes down emergency tariff powers

• On 20 February, the US Supreme Court invalidated the use of emergency provisions for imposing tariffs.
• White House introduces a 10% Universal Tariff
• In response, the administration pivoted to a 10% across‑the‑board tariff under alternate statutory authority.
• Markets remained broadly steady, though analysts noted the implications for inflation forecasting and global trade sentiment.

Tensions in Iran shape the Near‑Term Outlook

• The industry is closely watching whether elevated prices persist, as this could stall or reverse disinflation trends that have supported expectations of rate cuts.

Europe and Japan outperform

• Both regions saw strong equity performance in February, but sustained momentum will rely on earnings follow‑through and investor willingness to diversify away from the US.

Central Bank paths create opportunity and risk

• Bank of England remains dovish, The ECB is holding steady,
• And the Bank of Japan continues gradual normalisation.

Diversification proves its value in a turbulent month

• February’s market swings provide a clear reminder of the importance of maintaining a well‑diversified, multi‑asset portfolio.
• Flexibility and adaptability remain essential tools as markets navigate geopolitical risks and policy shifts. 

Additional Resources

• Multi-Asset Solutions - By incorporating equities, fixed income, cash, and alternative asset classes, our multi-asset solutions are designed to solve the most complex challenges.
• Intelligence Plus - We know success is more than just technical know-how. It requires a rounded skill set that blends technical knowledge with the ability to grow a business and build meaningful connection with clients. Intelligence Plus is designed to meet that need.