Emerging markets benefit from the recovery in the developed markets
Although we saw risk assets wobble at the start of the calendar year, by the end of February the S&P 500 had regained its 2014 starting position and was at all-time highs. With the exception of the Topix in Japan, the major equity markets (FTSE 100, S&P 500, Euro Stoxx) have all bounced back to positive year-to-date returns after an unexpectedly weak January. The MSCI emerging markets index had a stronger month, ending February in positive territory; not enough, though, to compensate for the 6.6% loss in January. This leaves it lagging the MSCI developed market index by 4.4% year to date.