News & Views

US equities record their strongest day in over two years as inflation softens   A softening in the latest inflation data out of the US sent markets sharply up this week, with US equities recording their strongest day in over two years on Thursday.  US inflation for the year to October came in at 7.7%,..

US Federal Reserve signals shallower, but higher interest rates The US Federal Reserve (Fed) raised rates by 0.75% for the fourth time in a row, whilst signalling that the magnitude of future rate hikes may moderate, acknowledging the delayed impact of monetary policy on economic activity and inflation. For a brief moment US equities rallied,..

Technology names disappoint in earnings season.   This week’s headlines were dominated by the continuation of earnings season in the US as investors digested disappointing reports from large cap technology names. Nearly $1 trillion was wiped off the value of the largest technology companies who all cited a slowing global economy and increasing cost pressures…

Economic & Market Overview • Consumer price inflation data for the US released in July pointed to a peak in headline inflation for this cycle, but later readings remained stubbornly high. • Sterling and gilts sold off sharply in reaction to the UK government’s announcement of a series of unfunded tax cuts. • Chinese equities..

Mixed third quarter company results lead to a choppy week in markets It has been a choppy week for equity markets as third quarter company results have taken centre stage, as investors look for evidence of inflationary pressures, rising borrowing costs and challenging economic conditions. US global investment banks, although reporting weaker earnings, nonetheless beat..

Markets rally towards the end of the week despite US inflation exceeding expectations Losses in markets from the beginning of the week were partially reversed as a powerful rally in equity markets gained ground on Thursday, despite the latest US inflation data coming in stronger than forecast. Whilst the rally in markets was not intuitive,..

Markets rally as the UK government commits to a partial climb down on its unfunded tax cuts Markets rallied strongly at the beginning of the week as the UK government backtracked on its plan to cut the 45% tax band for higher earnings, whilst softer economic data out of the US gave hope of a..

UK government bond turmoil ripples around the world before the Bank of England intervenes Government bonds sold off sharply this week, led by UK gilts, following the UK Chancellor of the Exchequer’s mini budget last Friday when he announced up to £45 billion worth of unfunded tax cuts. On Monday, the pound fell to a..

Rising rates and the Russia Ukraine conflict continue to take their toll on markets Bond and equity markets both sold off this week as a number of global central banks raised rates in their continued efforts to combat inflation, with the US Federal Reserve raising rates by 0.75% for the third time in a row,..

Sticky US inflation sends US rate expectations up and markets down US inflation data for August sent markets lower this week, as the latest consumer prices index increased by 0.1% against forecasts of a fall. As the Federal Reserve (Fed) prepares for its next rate hiking meeting next week, this was not the news investors..