This week it was announced that higher borrowing costs in the UK have hit demand and seen economic activity in the country fall unexpectedly for the first time since January. The release of August’s flash UK composite purchasing managers’ index on Wednesday saw forecasts for peak interest rates fall below 6%, with Sterling weakening against the dollar as a result.
Despite this, UK consumer confidence rose more than expected in August. This could be attributed to the easing in the cost of living crisis as energy prices and mortgage rates have both fallen recently, combined with wage growth increasing at the fastest pace on record. However, this confidence may soon be dented again given anticipated falls in house prices, still rising interest rates, and further rises in unemployment.
Nvidia shares reached a new all-time high this week, following the much-anticipated release of their second-quarter results on Wednesday, with the company reporting that revenues had doubled over the quarter as demand for its processors surged due to their widespread application in AI technology. This was far above analyst expectations, and the result echoed across European and Asian tech stocks, pushing indices higher on Thursday morning.
Wishing our readers an enjoyable bank-holiday weekend!
Andrea Wood, BSc (Hons) / Chartered MCSI – Investment Manager