CENTRAL BANKS CHOOSE TO WAIT AND SEE AS HIGH INTEREST RATES TAKE HOLD
This week we had two eagerly anticipated but equally unsurprising interest rate decisions. Both the US Federal Reserve and the Bank of England elected to keep interest rates where they are.
Read The Full ArticleMORE VOLATILITY FOR BONDS AS CONSUMER DEMAND DRIVES SURPRISINGLY STRONG US GROWTH
This week has been notable for the volatility in bond markets. On Monday, the ongoing sell-off in US government bonds pushed yields even higher and the yield on US 10-year Treasury bonds rose above the psychologically important level of 5% – a level last seen in 2007.
Read The Full ArticleGOVERNMENT BONDS UNDER PRESSURE AGAIN AS INFLATION REFUSES TO BUDGE
This week neatly illustrates the problem facing the Bank of England. Inflation remains stubbornly high and wage growth continues at near record levels, but consumer confidence and spending have contracted sharply.
Read The Full ArticleMARKETS RISE BUT INVESTORS REMAIN CAUTIOUS AS WAR BREAKS OUT IN THE MIDDLE EAST
This week began with news of war between Israel and Gaza following the terror attacks by Hamas last weekend. It might seem inappropriate to comment in a markets newsletter, however, it is important to mark these events.
Read The Full ArticleINVESTORS CONCERNED THE FED MAY BECOME MORE HAWKISH AS US ECONOMY REMAINS RESILIENT
This week was a good week for US employees, business owners and, in normal circumstances, it should have been a good week for investors.
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Autum Outlook
Positive equity markets have been offset by declines in bond markets as persistently high inflation has pushed central banks towards further rate hikes.
Read The Full ArticleINFLATION COOLS BUT HIGHER ENERGY PRICES COMPLICATE THE OUTLOOK FOR CENTRAL BANKS
This week there have been a number of small victories in the ongoing battle with global inflation. Both Spain and Germany reported prices rising slower than expected, which led to a cooler overall inflation picture for the Eurozone as a whole.
Read The Full ArticleCENTRAL BANKS LEAVE RATES UNCHANGED AS MARKETS LOOK TO HIGHER FOR LONGER
This week was dominated by interest rate decisions as the US, UK, Japanese and Swiss central banks all voted to leave rates unchanged.
Read The Full ArticleDISAPPOINTING ECONOMIC GROWTH POINTS TOWARDS THE END OF CENTRAL BANKS’ RATE HIKES
This week it felt like we may be entering the final phase of central banks’ battle against inflation.
Read The Full ArticleGILTS RALLY AS MARKETS CONSIDER THE IMPACT OF AN ECONOMIC SLOWDOWN
This week saw further volatility in bond markets. August has been a very poor month for government bonds as yields in the UK and US have increased on fears that rates may go higher and remain elevated for longer.
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