February 2023: rising interest rates, failing stock markets

Market update February 2023

With higher interest rates in February, the positive return on government bonds disappeared like snow in the sun in January. Most stock markets also lost some ground in February, after a particularly good start to the year in January. European stock markets did end the month in positive territory. After interest-rate hikes in (most of) 2022, 2023 started with lower capital market rates. This translated into positive returns on government and other bonds in January. In February, the picture turned back to higher capital market rates, and hence negative bond returns.