News & Views

Moderating US rate expectations and an improving outlook for China helps to drive equities higher Equity markets headed higher this week, supported by expectations that the Federal Reserve (Fed) will continue to temper future rate rises, whilst business survey data released in the Eurozone raised hopes that the region might be able to avoid a..

Economic & Market Overview • Having raised interest rates aggressively, the US Federal Reserve began to slow the rate of increases. • European equities delivered some of the strongest returns, as mild weather in early winter helped to lower gas prices. • Chinese equities rallied after Covid restrictions were finally relaxed. Evidence that inflationary pressures..

Weaker economic data weighs on Wall Street It was a mixed picture for global equities this week, as markets in the West digested poor economic data and hawkish remarks from central bank figures. Whilst in Asia, markets continued to rise off the back of China’s reopening from strict lockdown conditions. Markets in the US slipped..

US inflationary pressures ease, setting equity and bond markets up for a rally Year-on-year US inflation data weakened in the month of December, falling to 6.5%, down from 7.1% recorded the month before.  This, combined with softer average hourly earnings data released last Friday, which came in at 4.6% for the year to December versus..

The new year starts where it left off – inflation, inflation, inflation   Markets have picked up in the new year from where they left off last year, looking for evidence of a slowdown in economic activity, and therefore inflationary pressures.  Investors are trying to judge when the tightening monetary policy cycle will come to..

Central Bank rhetoric leads markets lower In a week that was dominated by major central banks action, equity markets finished broadly lower. Markets came under pressure by the end of the period after central banks, particularly in the US, Eurozone and UK all raised interest rates and signalled the fight against inflation was not over…

Strength in the US Service Sector raises concerns over further rate rises Data released this week surprised economists by pointing to continued strength in the US service sector, despite the sharp increase in interest rates.  The Institute for Supply Management Service Sector index was released on Monday, which provides an insight into the business conditions..

US stocks rallied for the second consecutive month since 2021 Most equity markets managed to finish the week in positive territory as of 8am London time, with the US stock market recording the first back-to-back monthly gains since mid-2021, with a sharp rally on the last day of November. The start of the week was..

Markets rally on rising hopes of a moderation in the interest rate cycle Markets made further ground this week as the minutes of the last US Federal Reserve meeting were released, showing a “substantial majority” of officials supporting a moderation in the pace of interest rate increases. Investors looking for evidence to support this view..

Federal Reserve officials reinforce further rate rises despite moderating inflation It has been a mixed week for markets, as economic data and company results have presented differing signals, following on from last week’s very strong market reaction to weaker than forecast US inflation data.  Speeches from a number of Federal Reserve officials reconfirmed that further..