European equity markets made strong gains in January, fully recovering from the slump in December, on the back of improving relationships between China and the US and signs of the Federal Reserve being more patient on raising interest rates. Equity markets around the globe also recovered in January, boosted by the easing of the trade tension. Sterling and global corporate bonds returned around 2% in January. CPI and RPI price inflations decreased by 20 and 50 basis points to 2.1% and 2.7% in December. Volatility across the globe declined in January from the highs in December as the market rebounded strongly. Realised volatilities in the US and European markets dropped from 30% and 20% down to around 15%. The volatility risk premium also decreased during the month.