In February 2026, ongoing uncertainty around trade tariffs and concerns about the impact of AI adoption on business profits affected the markets. Read on to discover some of the factors that may have affected your investment portfolio.

Markets reached record highs but were affected by AI concerns and trade tariffs

The FTSE 100, an index of the largest companies listed on the London Stock Exchange, was off to a great start in February – it closed at a record high of 10,341 points on 2 February, with a range of sectors performing well, including retailers, banks, airlines, and hospitality.

Similarly, Asian markets reported a welcome uptick on 3 February. Japan’s Nikkei index reached a record high after closing almost 4% higher than its opening level. In addition, India’s Sensex index was up 2.8% after the country struck a trade deal with the US.

However, on 4 February, AI fears affected investors.

Worries that the adoption of AI would harm software and data companies led to a sell-off in European and Asia-Pacific markets. However, the CEO of Nvidia, a leading AI company, Jensen Huang, dismissed the concerns, stating they were “illogical”.

Worries around AI intensified on 11 February when California-based firm Altruist Corp launched an AI service that it said could help advisers create personalised tax strategies. The announcement led to shares dipping for wealth managers, insurance firms, and price comparison sites.

On 12 February, the FTSE 100 reached another record high as it surpassed 10,500 points for the first time. This time it was lifted by shares in Schroders soaring by almost 30% in the first hours of trading after the asset management firm accepted a takeover offer from US investor Nuveen.

On 16 February, the BBC reported that the UK government was weighing up increasing defence spending at a faster pace than expected. The government previously set a target of spending 2.5% of economic output on defence by 2027, rising to 3% by the next parliament. The news led to defence stocks rising, including Babcock (2.5%), Melrose (2.2%), and BAE Systems (1.3%).

US trade tariffs have affected businesses and markets globally throughout 2025 and into 2026. On 20 February, the US Supreme Court ruled against the president’s economic policy of global tariffs, stating that Donald Trump had exceeded his authority by invoking emergency powers to impose them.

Following the announcement, the US Customs and Border Protection agency said it would stop collecting tariffs imposed under the International Emergency Economic Powers Act from Tuesday, 24 February.

This led to market volatility as investors and businesses assessed what the announcement would mean for them.

Further uncertainty followed on 24 February when Trump’s new global tariff was introduced. The new tariff is being applied under the 1974 Trade Act, which allows the president to impose a charge for 150 days without congressional approval. The changing situation places pressure on businesses exporting to the US.

On 28 February, US-Israeli strikes on Iran triggered fresh geopolitical uncertainty, which is likely to affect stock markets in March 2026 and potentially beyond.

UK

Inflation in the UK fell to 3% in the 12 months to January 2026, according to the Office for National Statistics (ONS). Prime Minister Keir Starmer said the fall would “ease the burden on people”.

Despite the inflation dip, the Bank of England chose to hold its base interest rate. However, it’s expected that a rate cut will happen in the coming months as inflation stabilises to support the economy.

Official GDP data suggests the UK economy grew by 0.1% in December 2025, and real annual GDP per capita grew following a period of no growth in the previous year. Chancellor Rachel Reeves commented that she expects stronger economic growth in 2026.

The UK posted its largest budget surplus since monthly records began in 1993. According to the ONS, the January surplus was £30.4 billion, compared to an expected £24 billion, which provided a boost to the chancellor ahead of the Spring Statement set to be delivered in March.

Readings from various S&P Global Purchasing Managers’ Indices (PMI) – which measure economic health based on surveys of purchasing managers – were positive.

• The manufacturing PMI hit a 17-month high with a reading of 51.8, surpassing the 50 mark that indicates growth. The PMI reported high sales volumes to Europe, the US, China, and several emerging markets.
• The construction sector posted a PMI reading of 46.4 in January. While the figure indicates contraction, it is an improvement on previous months and could signal that the worst of the downturn is over.
• The service sector PMI reading was 53.7. This is the fastest pace of growth recorded in almost two years.

Overall, the PMI data could support the chancellor’s assertions that economic growth will improve in 2026.

Europe

Figures from Eurostat show inflation across the eurozone fell to 1.7% in the 12 months to January 2026, taking it below the European Central Bank’s (ECB) 2% target.

The ECB opted to hold interest rates as inflation stabilised.

Economic data suggest the eurozone continues to face challenges. S&P Global’s manufacturing PMI recorded a reading of 49.5 in January, just below the 50 mark that indicates growth.

In addition, figures released by Eurostat show industrial production was down by 1.4% in December when compared to the previous month in the eurozone, and by 0.8% across the EU. The largest monthly decreases were recorded in Slovakia (-4.9%), Germany (-2.9%), and Spain (-2.6%).

However, the Sentix index, which measures investor morale, increased for the third consecutive month in the eurozone, which could suggest investors feel optimistic.

US

Inflation in the US fell by more than expected to 2.4% in the 12 months to January 2026. The news could mean the Federal Reserve is more likely to consider a cut to its interest rates in the coming months.

The Bureau of Economic Analysis reported economic growth of around 0.35% in the final three months of 2025, and an annualised rate of 1.4%, below the estimated 2.5%.

Figures from the Bureau of Labour Statistics indicate that US employers are feeling confident. In January, businesses hired 130,000 more workers, which was stronger than expected after the White House warned the number could fall because of its deportation program.

While positive, the Guardian noted that these figures may be revised downwards. Indeed, in 2025, the total new jobs for the year were revised significantly downwards to 181,000 from the initially reported 584,000.

Asia

Japan just avoided a technical recession – defined as two consecutive quarters of economic contraction. After the economy contracted by 0.7% in the third quarter of 2025, GDP figures showed weak growth of 0.1% in the following quarter. The news led to Japanese investment markets dipping, including the Nikkei 225 index (-0.24%) and the broader Topix index (-0.8%).

While China’s GDP was significantly higher at 4.5% in the final quarter of 2025, it was weaker than in previous years, partly due to trade frictions with the US. However, the country did hit its official 5% annual target.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Just over three months after her lengthy Autumn Budget, chancellor Rachel Reeves has addressed the House of Commons and delivered the government’s 2026 Spring Statement.

Ahead of the Statement, Reeves reinforced the government’s commitment to “one fiscal event, one Budget, a year”. So, it will come as a relief to many, including business owners, that the Spring Statement included no additional tax-raising measures. Furthermore, no changes to pensions or Individual Savings Accounts (ISAs) were announced.

Reeves also said that household disposable income is set to grow at twice the rate that was forecast in the Autumn Budget – leaving the average person £1,000 better off each year by the next election.

That being said, previous announcements, including changes to the tax regime, remain in place, and may affect personal finances and business owners in 2026/27 and beyond.

Reeves gave an overview of the Office for Budget Responsibility’s (OBR) economic forecast for the years to come. Notably, the OBR’s forecasts and the Statement as a whole made no mention of the potential economic impact of the unfolding situation in the Middle East, which may contribute to increased oil and gas prices that could prove inflationary and cause stock market volatility.

The chancellor confirmed the changes announced in the 2024 and 2025 Budgets

In an effort to reduce speculation and prevent a chop-and-change approach, the chancellor confirmed that key tax measures, announced in the Autumn Budgets of 2024 and 2025, will remain in place.

Among the key changes that have been reconfirmed and will affect personal finances are:

• Inheritance Tax (IHT) will be levied on most unused pension benefits from April 2027. It’s estimated that this change will result in an additional 10,500 estates being liable for IHT in 2027/28. This will contribute to a predicted rise in IHT receipts to £15 billion by 2030.
• Tax on income earned from property will rise by two percentage points from April 2027, increasing tax liability for landlords.
• There will also be a two percentage point increase in the basic and higher rates of Dividend Tax from April 2026, which may affect business owners and investors.
• Key tax thresholds, including those for Income Tax and the IHT nil-rate bands, will remain frozen until April 2031.

The lack of any tax-raising measures in the Spring Statement will be welcome news for many people. However, the previously announced changes could mean a review would still be beneficial.

The Office for Budget Responsibility has updated its forecasts for GDP growth, inflation, and house prices

The OBR has updated its real-terms GDP forecast every year between 2026 and 2029 when compared to the estimates it made in the 2025 Autumn Budget. The organisation now expects the economy to grow by:

• 2026 – 1.1% (a decrease of 0.3%)
• 2027 – 1.6% (unchanged)
• 2028 – 1.6% (an increase of 0.1%)
• 2029 – 1.5% (unchanged)

The OBR expects inflation to be at or around the Bank of England’s (BoE) 2% target over the next five years. Inflation easing would improve household spending power, which, in turn, could provide a boost for the economy and businesses. Indeed, real household disposable income is expected to grow by between 0.6% and 0.9% each year until 2030.

The BoE has already cut its base interest rate several times since the current government formed in July 2024, as inflationary pressures eased. If the OBR’s forecast is accurate, the BoE is likely to make additional cuts, which would reduce the cost of borrowing for households and businesses.

The OBR expects unemployment to rise from 4.75% in 2025 to a peak of 5.33% in 2026, driven by weaker demand for labour. After peaking in 2026, unemployment is expected to fall to 4.1% in 2030.

It also forecasts that house prices will rise by between 2.4% and 2.9% each year between 2026 and 2030.

The government reinforced its ongoing commitment to two key fiscal rules

In her speech, the chancellor confirmed the two fiscal rules set out in the Budget:

• Stability rule – Not to borrow money to fund day-to-day public spending by the end of this parliament (2029/30).
• Investment rule – To reduce government debt as a share of national income by 2029/30.

Addressing the stability rule first, although the cost of borrowing has risen during this period of heightened uncertainty, the chancellor vowed that the steps taken in the Statement will restore its headroom.

Turning next to the investment rule, Reeves also stated that this commitment will be met two years early, with net financial debt predicted to be 82.9% of GDP in 2025/26.

4 key Spring Statement measures

1. Boosting defence spending

At a time of growing worldwide tension, the chancellor announced increases to defence spending, aimed at making the UK a “defence industrial superpower”. Defence spending is set to reach 3.5% of GDP by 2035.

Defence innovation will include harnessing AI and drones, creating employment opportunities for engineers in the devolved nations, while a previously announced Defence Growth Board is also being created to support £400 million for defence innovation.

2. Tackling youth unemployment

The chancellor reconfirmed her commitment to getting those in Britain who can work into work. She stated that 1 in 8 young people is currently not in employment, education, or training.

The chancellor confirmed that reforms to the welfare system will produce welfare savings of £4.8 billion between 2026 and the end of the forecast period (2029/30).

3. Increasing property revenue

Previously announced property planning reforms will go ahead.

The reforms are expected to increase real levels of GDP by 0.2%, the equivalent of £6.8 billion for the economy, by 2029/30. Over 10 years, this is expected to increase to 0.4% of GDP (£15 billion). Reeves said this represents the biggest growth forecast for a policy with no fiscal cost.

4. Making government more efficient

The abolition of NHS England was announced back in March 2025 as part of wider efforts to increase NHS efficiency and productivity, and to cut spending. These measures will also include reducing costly agency outsourcing.

More widely, Reeves confirmed the £3.25 billion of investment in a new “transformation fund” that will drive modernisation across the public sector through digital reform and the adoption of AI. It’s hoped that these changes will result in a “leaner” and more efficient public sector.

After announcing a raft of changes in the Autumn Budget, the Spring Statement acts as a fiscal pitstop, upholding the government’s commitment to one significant fiscal event a year.

Please note

All information is from the chancellor’s speech, the gov.uk website, the Spring Statement press release and the Autumn Budget documents published by HM Treasury.

The content of this Spring Statement summary is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice.

While we believe this interpretation to be correct, it cannot be guaranteed, and we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within this summary. Please obtain professional advice before entering into or altering any new arrangement. 

The Financial Conduct Authority does not regulate tax planning.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

On 5 April 2026, the current tax year will end, and the new one will start the following day. Making a note of the deadline in your calendar could help you make the most of tax breaks as part of your financial plan.

Here’s why the start of a new tax year might matter to you.

1. 5 April 2026 may be your last opportunity to use 2025/26 allowances

When a tax year ends, many allowances reset. Consequently, the coming weeks might be your last chance to use some of them.

For example, you can add up to £20,000 into ISAs in 2025/26. ISAs provide a tax-efficient way to save or invest, which might reduce your overall tax liability. You cannot carry forward your unused ISA allowance, so 5 April 2026 might be your last opportunity to use the 2025/26 allowance.

In some cases, you are able to carry forward unused allowances, but they still have a date by which you must use them.

The annual exemption allows you to pass on up to £3,000 without worrying that it may be included in your estate when calculating Inheritance Tax (IHT). So, if your estate could be liable for IHT, it may provide a valuable way to pass on some of your wealth now.

You can carry forward any unused allowance for one tax year. As a result, this may be your last chance to use your 2024/25 allowance if you haven’t already done so.

Arranging a meeting with your financial planner can help you understand how you’ve used allowances and exemptions so far this year. It could also identify other opportunities that may make sense as part of your wider financial plan.

2. You can make a tax-efficient strategy for 2026/27

Planning how you’ll use allowances and exemptions throughout the year, rather than waiting until the deadline approaches, might be useful.

The pension Annual Allowance is the maximum amount you can contribute to your pension during the tax year while still receiving tax relief without incurring an additional charge. It covers contributions made by you, your employer, and any third parties. You can only claim tax relief up to 100% of your annual earnings.

For the 2026/27 tax year, the pension Annual Allowance is £60,000 for most people.

Deciding how much you want to contribute in 2026/27, and making monthly contributions, could be easier to manage than discovering a shortfall at the end of the tax year and needing to contribute an additional lump sum.

It’s also important to note that some allowances and tax rates will change in the new tax year.

For instance, from 6 April 2026, the basic and higher rates of Dividend Tax will both increase by two percentage points, which may affect business owners and investors. Being aware of these changes could influence the financial decisions you make now.

In some cases, you might benefit from looking even further ahead.

The ISA allowance is set to change for under-65s on 6 April 2027. While adults will still have a £20,000 ISA allowance, only £12,000 can be placed in a Cash ISA each tax year, with the remaining £8,000 reserved for investments. You’ll still be able to contribute the full ISA allowance into an investment account if you choose to.

With this in mind, you might change how you use your ISA allowance in 2026/27.

Contact us if you have questions about your tax strategy

It can be difficult to keep up with tax changes and understand what they mean for you. If you have any questions about your tax strategy for the current tax year and beyond, please get in touch. We can help you make the most of allowances and exemptions to improve your tax efficiency.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate tax planning.

Cryptoassets are not regulated financial products so please be aware that trading them carries a considerable amount of risk for your capital. Cryptocurrencies are also not covered by existing consumer protection laws and are not suitable for the majority of investors.

Cryptocurrency has become a common investment for people in recent years. Indeed, more people are choosing to invest in digital currencies such as Bitcoin and Ethereum.

The Financial Conduct Authority (16 December 2025) reports that roughly 8% of the UK’s population were cryptoasset owners in 2025.

However, with this rise in crypto interest comes more risk. Scammers have been developing increasingly sophisticated ways to exploit a lack of familiarity with how cryptocurrencies work.

According to the Guardian (24 October 2025), the amount lost to investment scams in the UK increased by 55% in 2025, with fake cryptocurrency schemes topping the list. Worryingly, losses to investment scams reached £97.7 million during the first six months of 2025 – more than £500,000 each day.

It’s vital to remember that cryptocurrencies are risky and tend to be volatile, meaning they aren’t suitable for everyone. Still, if you’re considering investing in cryptocurrency, understanding the difference between a scam and a real opportunity could protect your wealth.

Here are six of the most common ways fraudsters might take advantage of the hype around crypto and attempt to lure you in.

1. Enticing you with social media adverts and fake endorsements

Social media has become one of the main tools fraudsters will use to commit cryptocurrency crimes.

Scammers will often use professional-looking adverts on platforms such as Instagram or YouTube to promote investment opportunities.

Some adverts feature fake celebrity endorsements, or even “deepfakes” – which are AI-generated videos that impersonate real people – to show well-known figures supporting a cryptocurrency.

These clips are usually very convincing, and even experienced crypto investors can be fooled.

In reality, the celebrities in the videos often have absolutely no involvement in any investment opportunities related to the currency. Regardless, these deepfakes often succeed in instilling trust and getting social media users to hand over personal details.

Fraudsters also use social media adverts to entice their victims. With them, they often downplay the risks or make it seem like everyone is investing in crypto.

2. Building confidence with small early “profits”

Scammers will also attempt to persuade you to make smaller initial investments to draw you in.

Scammers won’t always ask you for a large investment straight away. Instead, they could attempt to gain your trust by suggesting smaller investments to begin with.

Yet, once you’ve done so, they will then try to show that you’ve already turned a “profit”.

Of course, watching your investments rise in value can make any scam seem authentic. You may even decide to contribute more to the scam.

Then, when you attempt to withdraw funds, scammers might discourage you by imposing additional fees. Or, in the worst-case scenario, disappear altogether with your money.

3. Creating a false sense of urgency

Many scams, including those involving cryptocurrency, rely on pressuring you to act quickly.

You may be told that an opportunity will be available for only a short period, or that the market is about to rise significantly. This could prompt you to act now to secure any returns.

However, these pressure tactics are designed to prevent you from stopping, thinking, or even seeking professional advice.

You should remember that genuine investments typically don’t require instant decisions, and being rushed is usually a red flag that you’re walking into a scam.

4. Using overly complex explanations

It’s worth noting that cryptocurrency is new, highly technical, and often unfamiliar to even the most experienced investor. Unfortunately, scammers can use this to their advantage.

Scammers may use confusing jargon, complex charts, or technical explanations to discourage you from asking questions, all while creating the impression that they’re experts.

If you don’t fully understand an investment, it’s essential to pause and think. Legitimate providers should always be able to explain how everything works and the risks involved.

5. Being asked to keep an investment a secret

You may find that fraudsters will tell you not to discuss any investment opportunities with your friends, family, or advisers.

They may even warn you that sharing any details could affect your returns, or that other people won’t understand the opportunity.

This makes it far easier for scammers to manipulate any future decisions you might make, and harder for your support network to raise any concerns.

6. Using fake cryptocurrency wallets or websites

Fraudsters often create fake wallets or websites that might seem like legitimate platforms on the surface.

You could be directed to download an unusual mobile app or visit a website that seems professional.

In reality, these fake platforms can steal your login details, giving scammers access to your financial information.

Then, with this information, the fraudsters could compromise other assets, such as your bank or investment accounts.

Scammers might also offer seemingly legitimate tools you can use for tracking or trading digital currency, only to misappropriate any funds you transfer to them.

As such, it’s important to carefully check any URLs and verify any downloads with the proper provider.

Contact us

It’s always worth speaking to a trusted professional before you make high-risk investment decisions. Please contact us today to find out how we can help.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Cryptoassets are not regulated financial products so please be aware that trading them carries a considerable amount of risk for your capital. Cryptocurrencies are also not covered by existing consumer protection laws and are not suitable for the majority of investors.

Geopolitical tensions and threats of trade tariffs continued to impact global investment markets at the start of 2026. Read on to find out what factors may have affected your investments at the start of 2026.

Markets experienced highs, but geopolitical tensions continue to cause volatility

On 2 January, the first day of trading in 2026, the FTSE 100 – an index of the largest 100 companies listed on the London Stock Exchange – hit a new high and exceeded 10,000 points for the first time, getting the year off to a good start for investors.

On 5 January, headlines about the US’s strike on Venezuela and the capture of the country’s president, Nicolás Maduro, affected markets.

Some investors sought “safe” assets, which led to gold rising by more than 2%, while defence stocks in Europe climbed. In addition, shares in US oil companies jumped, including Chevron (4.4%) and ExxonMobil (2%).

There was good news from UK retailer Next on 6 January. The company beat expectations over the Christmas period, with sales £51 million higher than anticipated. The 2.8% boost in its stock value led to the firm becoming the top riser on the FTSE 100.

The UK’s FTSE 100 wasn’t the only index to perform well at the start of January. The German index DAX hit 25,000 points for the first time on 7 January.

However, rising geopolitical tensions between the US and Europe led to European markets opening in the red on 8 January and losses across the Asia-Pacific region earlier in the day. The fall occurred following meetings between the US and Denmark about the future of Greenland, over which US President Donald Trump has said he wants control.

News of a potential deal between mining giants Rio Tinto and Glencore sent ripples through the London stock market on 9 January. Glencore, which would likely be acquired if a deal went through, saw shares increase by 8%. Meanwhile, Rio Tinto, the likely buyer, saw shares fall by 2.6%.

Trade tariffs and threats of them affected markets throughout 2025, and this trend looks set to continue into 2026.

On 13 January, Trump threatened countries doing business with Iran with a 25% tariff as Iranian authorities cracked down on nationwide protests. Among the top export destinations for Iranian goods are China, the UAE, and India.

The following day, Trump announced further plans to impose new 10% trade levies on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland from 1 February, which would rise to 25% on 1 June. The president said the tariffs would remain in place until the countries supported his goal to acquire Greenland.

The news led to markets falling in Europe when they opened, including the UK’s FTSE 100 (-0.48%), France’s CAC (-2.1%), and Germany’s DAX (-1.35%). Among the sectors hit hardest were European car manufacturers, such as Mercedes-Benz (-6%), BMW (-4.8%), and Volkswagen (-3.5%).

In contrast, defence stocks, such as Germany’s Rheinmetall (3%), the UK’s BAE Systems (2%), and Italy’s Leonardo (3%), were up.

US markets were closed on 14 January to mark Martin Luther King Day, but the Dow Jones dropped by 1.4% when markets reopened on 15 January. Similarly, the S&P 500 and technology-focused index, the Nasdaq, both fell around 1.6%.

After days of uncertainty, Trump pledged not to use force to take control of Greenland on 21 January, and dropped the threat of tariffs, which calmed the markets.

UK

In the 12 months to December 2025, UK inflation increased to 3.4%, which may affect the Bank of England’s decision on whether to lower interest rates in the coming months.

Data from the Office for National Statistics shows the UK economy expanded by 0.3% in November, which was better than economists expected. In addition, figures were revised upwards from -0.1% to 0.1% for September.

Insight from S&P Global’s Purchasing Managers’ Index (PMI) was also positive. UK factories grew at their fastest pace in 15 months in December. Rob Dobson, director at S&P Global Market Intelligence, said the delivery of the government’s Budget in November had helped to end uncertainty that was affecting businesses.

Europe

Data from the European Central Bank shows eurozone inflation dropped to 1.9% in the 12 months to December 2025, just below the bank’s 2% target.

S&P PMI data for the eurozone showed the pace of growth slowed in December, but the bloc still posted its strongest quarterly performance in two and a half years. The economy has now grown for seven consecutive months, and S&P Global said the overall “picture looks good”.

US

US inflation remained unchanged at 2.7% in the 12 months to December 2025.

Figures released in January 2026 show the US trade deficit shrank in October, thanks to a jump in exports and a fall in imports. According to the US Census Bureau, the deficit fell to $29.4 billion (£21.5 billion). That marks a fall of 39% when compared to a month earlier and is the lowest trade deficit recorded since 2009.

While seemingly good news for the US economy, Bloomberg noted there have been larger monthly swings than usual due to the implementation of tariffs.

Updated official figures suggest many more jobs were lost in October than were first estimated. Data now indicates that jobs fell by 173,000, compared to the initial estimate of 105,000. Job losses may suggest a lack of confidence among businesses.

US company Alphabet, the parent company of Google, reached a valuation of $4 trillion (£2.92 trillion) for the first time on 12 January. The news followed a report that Apple had chosen Google’s Gemini as the foundation for its AI model in the future, leading to a boost in its share price.

Asia

Japanese stocks made their strongest start to a year in several decades.

The Topix index and the Nikkei 225 increased by 3.8% and 4.3%, respectively, during the first two days of trading. According to Bloomberg, that’s the strongest start to a new year since at least 1990. The rise is linked to a new prime minister, who, it is hoped, will embrace looser fiscal policy to stimulate the economy. 

There was also good news for Chinese car company BYD. The firm officially overtook Tesla as the top seller of electric cars in the world. In 2025, BYD delivered 2.26 million electric cars, up by 28% when compared to 2024 following aggressive expansion into the European market.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.