Market Commentary

Global Markets Update Q4 earnings season picked up in the States this week. Investors are keen to see if reported earnings match the optimism displayed since the Federal Reserve pivoted on interest rate expectations back in mid-December. So far, the mood has been pretty positive, with some high-profile ‘beats’ from names like Netflix and ASML,…

Equity markets continued their sluggish start to the year with inflation figures once again dominating investor sentiment.   On Wednesday, the Office for National Statistics released inflation data for the UK. In the year to December inflation was 4%, up from 3.9% the month earlier and higher than economists were expecting (3.7%). It is the…

Equity markets remained range-bound this week as inflation data in the United States led to questions over whether investors are being over-optimistic regarding the potential for interest rate cuts in the first half of 2024. According to the US Labor Department, inflation was 3.4% in the year to December, up from 3.1% in November, and…

First, please let me take the opportunity to wish you a Happy and prosperous New Year. After a strong run for equities and bonds over the last couple of months, the Federal Reserve (Fed) officials poured a little water on the fire with the release of the minutes from its December meeting on Wednesday. While…

It was a strong week for investment markets as investors reacted positively to speculation that the US central bank could embark on a sharp series of interest rate cuts next year. The Federal Reserve (Fed) held its interest rate steady for the third straight meeting, with chairman, Jay Powell, delivering an early Christmas present to…

It was a broadly positive week, with gains seen across European and American equity markets. On Thursday we got house price data from Halifax. The bank announced that prices rose for a second consecutive month, gaining 0.5% in November, indicating that the market is showing signs of stabilisation. Stocks connected to the construction industry and…

It was a positive week for investment markets. During November, investors have become progressively more reassured that we have reached the peak in interest rates, leading to an increase in risk appetite and strong gains for global equity markets. Inflation has continued to fall faster in many cases than expected and this instils a feeling…

The nation waited patiently on Wednesday to receive Jeremy Hunt’s much-anticipated Autumn Statement. The Chancellor announced policies aiming to cut taxes (personal and business) and stimulate growth in British businesses. In terms of market reaction, it was fairly muted. Thankfully, there was no repeat of the volatility caused by Liz Truss and Kwasi Kwarteng’s disastrous…

In the world of finance, Inflation was firmly on the agenda this week as investors keenly awaited the release of October’s data.         First up on Tuesday, we got the news that consumer price inflation (CPI) in the United States fell from 3.7% in September to 3.2% in October, and importantly, core…

UK Government bond prices moved higher (causing yields to fall) this week following comments from the Bank of England’s chief economist, Huw Pill, that the bank may be willing to consider interest rate cuts in the middle of next year.         Similar price moves have been experienced in the US and Europe in…