There have been a number of factors that have contributed towards the strong equity market returns so far in 2019 and most relate to an easing of a number of the main concerns that were associated with the market heading into the year. The most common reasons for 2018’s poor equity market performance included tighter monetary policy from the Federal Reserve, political risks, in particular the US / China trade war and Brexit, and a slowdown in global economic growth. On the political front, there has been a notable thawing of relations between Washington and Beijing, with talks between both parties said to be making progress. Meanwhile, in the UK, although there remains considerable uncertainty surrounding Brexit, the market’s reaction to the latest developments (sterling has strengthened in the currency market and the FTSE 250 Index has outperformed the FTSE 100) would suggest that the probability of the UK leaving the European Union without a formal agreement has fallen. On global growth, economic data, as measured by the Citi Global Economic Surprise Index, has improved in January, albeit modestly. Additionally, the Chinese government has pledged to support the world’s second largest economy with both fiscal and monetary stimulus measures, the details of which are expected to be announced during the annual parliamentary meeting in March. Finally, after raising rates in December and signalling that a further two rate increases are likely this year, the US Federal Reserve’s Federal Open Market Committee made a significant U-turn in January, by indicating that the next move in interest rates is just as likely to be down as it is up. Fed Chair Jay Powell argued that “cross-currents”, including trade tensions and slowing economic growth in the eurozone and China, had prompted this change in stance.