Which stock markets are performing strongly in early 2026?

Stock markets in the UK, US, and Europe are posting strong returns in the opening weeks of 2026.

Where are fund managers investing beyond the US market?

Fund managers are seeking value and growth opportunities in regions like the UK, Japan, and South Korea, shifting focus from large US companies.

What opportunities exist in the UK stock market?

The UK market, trading at a discount, offers potential in high-quality information services businesses that provide critical data.

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Global Stocks Soar: UK, US, Europe Lead Rally

30 Jan

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Summary

Stock markets in the UK, US, and Europe posted strong returns in early 2026.
Japan and the UK saw impressive stock performances in 2025.
Fund managers are shifting investments from the US to other regions like Japan and South Korea.

Global Stocks Soar: UK, US, Europe Lead Rally

Global stock markets have begun 2026 with significant momentum, as the FTSE 100, S&P 500, and Germany's Dax all posted strong returns in the opening weeks. This performance builds on a highly successful 2025, during which the UK's FTSE 100 saw a 26% increase, Japan's Nikkei climbed 28%, and the US S&P 500 returned 18%.

As US markets, comprising over 70% of the global total, continue to dominate, active fund managers are increasingly looking beyond America's mega-cap stocks. They are actively seeking value and growth opportunities in other regions, with a particular focus on the UK, Japan, and South Korea.

The UK market, trading at a discount, offers opportunities in high-quality information services businesses like Relx and Experian. Japan, emerging from deflation, presents potential in automation and industrial technology, driven by corporate reforms and a weaker Yen. South Korea is also attracting attention due to its low valuations and government-led 'Corporate Value-up' initiatives, aimed at closing the 'Korea discount'.