Emerging markets were the month’s standout, seeing Courtiers’ Emerging Market portfolio return around 10%. James also highlights a new holding – Signify – world leader in lighting.

Head of Asset Management James Timpson explains what happened in Courtiers Funds and global markets throughout January 2026.

Global equity markets have enjoyed a strong start to 2026 despite rising geopolitical tensions largely stemming from the US. Amidst the capture of Venezuelan President Nicolas Maduro by American forces and US President Donald Trump’s threats to take over Greenland, the MSCI World index still managed to gain 1.7% as economic growth expectations remained strong.

Small cap stocks were among the stronger performers both in the UK and the US, where they rose 5.7% and 5.6% respectively, and it was an especially strong month for Emerging Market stocks as they surged almost 9% amidst a weakening US dollar for their best monthly return since November 2022. Meanwhile the ‘Magnificent Seven’ tech stocks in the US underperformed the global market as they returned just 0.6%.

Although equity markets were relatively unmoved by the geopolitical shocks, there was plenty of movement in commodity markets, in particular the precious metals which spent most of the month extending their historic rally amidst the geopolitical uncertainty. However following Trump’s nomination of Kevin Warsh for the Federal Reserve chair, which lowered rate cut expectations and caused the dollar to bounce back, gold and silver plummeted 9.0% and 26.4% respectively in a single day – the latter suffering its worst daily drop since the 1980s.

Full round-up of January market performance

In the UK, the FTSE 100 index gained 2.99% while medium and smaller companies, measured by the FTSE 250 ex IT index and the FTSE Small Cap ex IT index respectively, rose 4.54% and 5.70%. In the US, the S&P 500 USD index picked up 1.45% while in Europe the Eurostoxx 50 EUR index gathered 2.78%. Japanese stocks measured by the Topix JPY index grew 4.62%.

Emerging markets returns were particularly strong with the MSCI Emerging Markets index surging 8.79% in local currency terms. Latin American equities measured by the MSCI Latin America local currency index jumped 11.27% and Chinese stocks measured by the MSCI China CNY index amassed 4.92%. However Indian stocks measured by the Nifty 50 INR index fell 3.10%.

In the fixed income market, UK government bonds, measured by the FTSE Gilts All Stocks index, slipped -0.10% with long dated (over 15 years to maturity) gilts dropping -0.87%. Sterling denominated corporate bonds, measured by the Markit iBoxx Sterling Corporates index, returned 0.31%. In the high yield market, the ICE Bank of America Sterling High Yield index increased 1.29%.

In the commodities market, the S&P GSCI USD index, which consists of a basket of commodities including oil, metals and agricultural items, rose 9.83%. Brent crude oil futures gained 13.57% during the month. In the precious metals markets, the S&P GSCI Gold and Silver indices climbed 8.82% and 11.56% in USD respectively, while in the agricultural markets corn and wheat futures returned -2.73% and 6.11% in USD respectively.

In currency markets, it was a strong month for the pound as it appreciated 1.57% versus the US dollar, 0.67% against the euro and 0.29% versus the Japanese yen.