It’s important to note that this update reflects market conditions prior to the weekend’s developments in the Middle East, and so neither those events nor today’s reaction are fully captured here. Through last week, markets broadly followed the pattern seen in recent sessions, with sentiment shaped by two persistent themes, namely ongoing concerns around the disruptive potential of artificial intelligence (AI) and heightened uncertainty over tariff policy. President Trump’s State of the Union address on Wednesday added little clarity, and investors responded cautiously given the lack of reassurance on future trade arrangements. Equities opened the week on the back foot, and while NVIDIA’s much‑anticipated earnings comfortably exceeded already ambitious expectations (Source: NVIDIA – Fourth Quarter and Fiscal 2026 Earnings, 25/02/2026), they did little to shift the broader risk‑off tone. The S&P 500 proved the most resilient of the major US indices, slipping -0.4% over the week, while the NASDAQ fell -1.0%, leaving the technology‑heavy benchmark down -2.5% over the first two months of the year.

In Europe, equity markets posted modest gains, with the MSCI Europe ex‑UK rising +0.3% in local‑currency terms to reach new highs. Under the surface, German equities were broadly flat, while Italy and France saw firmer momentum. The FTSE 100 also outperformed, advancing +2.1%, supported by strength across sectors viewed as relatively insulated from AI‑related volatility, most notably utilities, mining and pharmaceuticals. Across Asia, sentiment was stronger. Japanese equities rallied sharply, with the Nikkei 225 climbing +3.6%, helped by supportive investor reaction to the latest US tariff announcements and ongoing optimism around the policy direction under Prime Minister Sanae Takaichi. Mainland China also saw solid gains, with the Shanghai Composite up +2.0% over the week (in renminbi). That came despite mixed signals from consumption data around Lunar New Year with tourism spending rising overall, but per‑trip spending at the individual level softening (Source: T. Rowe Price - Global Markets Weekly Update, 27/02/2026).

Moving to commodities, oil prices rose steadily with brent concluding the week +1.0% higher at $72.55 a barrel. That relatively contained move was immediately overshadowed by events over the weekend, when a rapid escalation in the Middle East, including US and Israeli strikes on Iran, followed by retaliatory missile attacks and disruptions to tanker traffic. Brent prices surged by more than +8.0% this morning as markets assessed the risk of a prolonged disruption to oil flows through the Strait of Hormuz. Gold also extended its recent strength, gaining approximately 3.9% over the course of last week as investors rotated toward defensive assets. The rally, which lifted bullion above $5,200 per ounce, was underpinned by steady haven demand and softer real yields.

SJP Approved: 02/03/2026

Past performance is not indicative of future performance.

The value of an investment with St. James’s Place Investment Management Limited may fall as well as rise. You may get back less than the amount invested.

The value of investments may fall as well as rise purely on account of exchange rate fluctuations.

The information contained does not constitute investment advice.

Full advice should be taken to evaluate the risks, consequences, and suitability of any prospective investment. Opinions provided are subject to change in the future as they may be influenced by changes in regulation or market conditions. Where the opinions of third parties are offered, these may not necessarily reflect those of St. James’s Place Investment Management Limited.

FTSE Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2025. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE Russell®” is a trademark of the relevant LSE Group companies and is used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data, and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor, or endorse the content of this communication.

MSCI Source: Certain information contained herein, including without limitation text, data, graphs, charts (collectively, the “Information”) is the copyrighted, trade secret, trademarked and/or proprietary property of MSCI Inc. or its subsidiaries (collectively, “MSCI”), or MSCI’s licensors, direct or indirect suppliers or any third party involved in making or compiling any Information (collectively, with MSCI, the “Information Providers”), is provided for informational purposes only, and may not be modified, reverse-engineered, reproduced, resold or redisseminated in whole or in part, without prior written consent.
S&P & Dow Jones Source: © S&P Dow Jones LLC 2025. All rights reserved.

Rowan Dartington is a trading name of St. James’s Place Investment Management Limited which is part of St. James’s Place PLC. St. James’s Place Investment Management Limited is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales No. 02752304 at St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom.