SUCCESS OF FAR-RIGHT PARTIES IN EUROPEAN ELECTIONS RATTLES EQUITY AND BOND MARKETS
This week we witnessed significant volatility in European markets after nationalist parties made big gains in the European parliamentary elections.
Read The Full ArticleBOND MARKETS RALLY AS THE ECB AND BANK OF CANADA CUT INTEREST RATES
This week brought the first interest rate cuts for developed economies as the inflation caused by pandemic-era shortages and stimulus has slowed
enough for central banks to begin easing.
GOVERNMENT BOND YIELDS CLIMB AS MARKETS TURN LESS OPTIMISTIC ON RATE CUTS
This week a general sense of pessimism returned to bond markets as the prospect of central bank rate cuts has been pushed back, again.
Read The Full ArticleSTICKY INFLATION SENDS BOND YIELDS BACK UP AND SUNAK CALLS AN EARLY SUMMER ELECTION
This week Rishi Sunak committed to a general election on 4 July. With the Conservatives trailing badly in the opinion polls…
Read The Full ArticleMARKETS RECEIVE A LIFT FROM THE RETURN OF DISINFLATION IN THE US
This week markets warmly welcomed news that US inflation is falling again. After three months of CPI creeping up, the small decline allowed
traders to breathe a little easier, allowed the recent rally in government bonds to continue and added to the equity rally that only a few weeks
ago appeared to be running out of steam.
UK ECONOMY RETURNS TO GROWTH AS BANK OF ENGLAND EDGE NEARER RATE CUTS
This week brought some good news for the UK. Surprisingly strong growth in the first quarter of the year has pulled the UK out of recession.
Read The Full ArticleFEDERAL RESERVE FALLS INTO LINE WITH MARKETS AS IT BECOMES MORE CAUTIOUS ON RATE CUTS
This week markets have again been unsettled by US economic strength. Since last autumn bond investors have been testing central banks’ willingness to keep rates high and have regularly had to adjust their outlooks when confronted by sticky inflation, high economic growth and central bank intransigence.
Read The Full ArticleSTRENGTH OF THE US ECONOMY CAUSES MARKETS TO REVIEW EXPECTATIONS FOR RATE CUTS
This week markets have again been unsettled by US economic strength. Since last autumn bond investors have been testing central banks’ willingness to keep rates high and have regularly had to adjust their outlooks when confronted by sticky inflation, high economic growth and central bank intransigence.
Read The Full ArticleGOVERNMENT BOND MARKETS RATTLED BY ANOTHER STRONG INFLATION READING IN THE US
This week bond markets were unsettled by US inflation rising for the second month in a row.
Read The Full ArticleCENTRAL BANKS CONSIDER TIMING OF RATE CUTS WITH RELEASE OF NEW DATA
This week strong private sector jobs numbers in the US showed that while the trend of disinflation was continuing, the strength of the labour
market wasn’t going to convince the Fed to start cutting rates just yet.