Home›ETFs & Funds›Fund Industry›Japanese and U.K. equities have tended to rise after F…

Japanese and U.K. equities have tended to rise after Fed hiking starts

Citi said relative returns in Japan and the U.K. average about 2% to 3% after the Federal Reserve’s first interest-rate hike in a new tightening cycle.

Reported · Written up by our desk · Fund Industry

Citi has pointed to historical patterns suggesting markets outside the U.S. can outperform when the Federal Reserve begins a new hiking cycle, even as U.S. stocks often struggle afterward.

According to MarketWatch, Citi found that relative returns for Japanese and U.K. equities have tended to reach roughly 2% to 3% on average following the first Fed interest-rate increase in a hiking cycle.

The analysis highlighted the shift in performance timing around the initial move rather than the subsequent trajectory of returns, MarketWatch said.

More like this

Sources