After a very strong performance in 2019, equity markets started 2020 on the back foot due to fears of a coronavirus outbreak and rising tensions between the US and Iran. The FTSE 100 ended the month down by 3.4%, with the UK officially leaving the EU on the last day of the month. Bond markets had a strong performance during the month as investors poured into less risky assets. GBP Solvency II risk-free rates decreased at all terms in January, with medium to longer-term rates seeing the largest declines. UK’s CPI inflation decreased by 20 points to 1.3% in December, while the RPI measure remained unchanged at 2.2%. Realised volatilities increased in January, surging above 10% by month-end on the back of coronavirus fears, but remain below historical averages. The FTSE 100 ended the month with a realised volatility of 15%, while the S&P 500 had a lower realised volatility of 13% at month-end.