MARKETS 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.
Spring Outlook
Inflation has continued to fall since the start of the year. However, the decline has been patchy and this, combined with relatively strong economic growth in the US and strong wage growth on both sides of the Atlantic, has caused markets to reassess their expectations for interest rate cuts.
Read The Full ArticleMARKETS RISE AS CENTRAL BANKS SIGNAL POSSIBLE RATE CUTS IN THE SPRING
This week falling inflation and positive updates from central banks helped generate an optimistic mood. Equities have done well so far this year,
but bonds have struggled due to the tension between central banks and markets’ assumptions about rate cuts.
POLITICS TAKES CENTRE STAGE AS CHANCELLOR TAKES FINAL CHANCE FOR A PRE-ELECTION GIVEAWAY
This week has been all about politics. The US presidential primary season ended as Nikki Haley withdrew from the Republican contest.
Read The Full ArticleINFLATION CONTINUES TO SLOW BUT SPENDING IN SOME AREAS APPEARS UNAFFECTED BY HIGH RATES
This week investors breathed a sigh of relief as US core inflation resumed its downward trend. The Core Personal Consumption Expenditure Price
Index is a significant measures of US inflation as it is closely watched by the Federal Reserve.