Europe shines as tax year end beckons

Europe is having its moment in the sun as investors look for other options outside of the US. Main indices in the UK and France have hit new highs this month, as has the ‘Stoxx Europe 600’ index. That’s a collection of the 600 largest companies in Europe which let the public buy and sell their shares.

This index is up about 3% so far in February alone, driven by defence, UK fund manager Schroders (after a US takeover announcement) and Orsted, one of the world’s largest developers of offshore wind farms. Technology is only about 8% of this index, so it’s an interesting diversifier from the tech-heavy States.

Kospi Kremes and Bovril top the charts

For those wondering, the best performing indices so far this year are South Korea’s KOSPI (AI-led) followed by Brazil’s Bovespa (commodities and a weak Real, which means foreign money comes gobbling greedily in and exports get more profitable).

If you want a deeper dive into trends and momentum, the team has taken a closer look at the top performers over the three months from November to January, with healthcare and energy having a good run.

And inflation is slowly easing

Closer to home, we had lower inflation numbers announced this week (3%), which points to a strong likelihood of lower interest rates when the Bank of England next meets on March 19th. This all suggests that lower mortgage rates could lie ahead and we might expect a new norm of below 4% for 2-year fixes if your deposit is big enough.

Top Tax Tips

Finally, there are 44 days left until the end of the tax year. Yes, I’m full of fun stats like this, which is why I’m always the life and soul of every party. We’re all paying more tax. Full stop. This piece has some cunning tips on how ISAs, pensions, salary sacrifice, kids, and getting married can enable a lower tax bill.

Don’t talk to me about kids. It’s been an… interesting week. (British understatement). I have lost online access to the older rugrat’s Junior ISA because he is now 18. But let’s just say that this week’s behaviour is not conducive to reminding him there is an ISA stash, which he can access without me. Shhhhhh – don’t tell! Little B*&gg3r! Grrrrrrrr! &*%$*&!

Have a great weekend, everyone!

Holly