Category: Market Update

Market Update: ECB’s Lagard makes rate cut history

Europe’s first rate cut was anticipated by markets as much as last year’s pivot from further rate rises. Will it stimulate capital markets to the same degree?

/ 10th June 2024

Market Update: Consolidation

No month end fireworks for May, just dull but solidifying consolidation by increasingly discerning investors focused on the data, not politics (yet).

/ 4th June 2024

Market Update: Nvidia versus the Fed

Following the strong upwards surge in stocks and bonds at the beginning of May, capital markets have recently moderated and were mostly flat, to slightly down, overall last week. Britons were preoccupied with Rishi Sunak’s surprise election call – polling now less than six weeks away – but capital markets clearly had bigger things to worry about.

/ 28th May 2024

Market Update: Pluses and Minuses

It was a decent week for investors, with global stocks up around 1% from last Friday. British and European equities finished virtually flat, with the US and China slightly up. The gain for US stocks was not outsized, but it was enough to take the S&P 500 to a fresh all-time high on Wednesday. Breaking that record made a fairly average week for markets look like a great one.

/ 20th May 2024

Market Update: A blooming May for the UK

Global equity markets are rising and the UK is now doing well, the Bank of England is dovish and Sterling is holding up - is political change less worrisome here than elsewhere?

/ 13th May 2024

Market Update: Still sticking to the plan

Central bankers give confident message that inflation targets will be met.

/ 7th May 2024

Market Update: Inflation, a common side effect of growth  

The rose tinted market outlook of the first quarter expected a rebound of inflation, and it’s now showing in the latest data.

/ 29th April 2024

Market Update: Market quiet on the Middle Eastern front

Capital markets have corrected at the same time as the conflict in the Middle East intensified, yet the asset price dynamics tell a different story.

/ 22nd April 2024

Market Update: What the return of volatility tells us

Positive market sentiment is put to the test as US rate cuts seemingly disappear over the horizon and Europe, with less resilient markets, looks very likely to see the first cut in June.

/ 15th April 2024

Market Update: Bumpy start to the quarter

After such a strong six months, market volatility returned along with increasing oil prices, are economics and geopolitics or market dynamics to blame?

/ 8th April 2024

Market Update: Stick to the plan

Following their policy meetings, the big central banks presented the calm message that their plans are working, and markets are inclined to believe them.

/ 25th March 2024

Market Update: The flipside of inflation – growth

Of late European stocks are outshining their US peers even though Europe’s economies are mostly in recession – are diverging interest rates coming?

/ 18th March 2024

Market Update: At least currency markets notice the budget

Currencies proved to be the one mildly exciting market dynamic in a week otherwise shining more with what did not happen, rather than with what did.

/ 11th March 2024

Market Update: Winners and losers of stabilising yields

The ECB meets this week, and the BoE in two weeks’ time. Interest rate and yield volatility has calmed amid signs that some can now bear the cost of new debt. Is this a sign that we’ve reached an equilibrium?

/ 4th March 2024

Market Update: M&A activity sets growth against value

Consumer confidence is yet to catch up with business sentiment which is now driving a flurry of value seeking mergers and acquisitions.

/ 26th February 2024

Market Update: UK not growing really, not growing nominally

The UK has had no real growth for two years but last week’s 2023 Q4 GDP data confirms a slight recession. Should the Bank of England respond?

/ 19th February 2024

Market Update: US stock market entering bubble territory?

With the S&P500 US stock index breaking through the 5,000 mark for the first time, we discuss parallels to the bubble from 25 years ago.

/ 12th February 2024

Market Update: Central banks challenge Goldilocks assumptions

The apparent acceptance of later rate cuts kept markets going during January, but may be put to the test in February as US regional banks creak, once again, under the increased cost of refinancing.

/ 5th February 2024

Market Update: Positive growth sentiment returns

January is beginning to shape up rather nicely, after both positive growth sentiment as well as surplus liquidity staged a welcome return

/ 29th January 2024

Market Update: Data vs Davos

Was it the latest market data making early and substantial interest rate cuts unlikely, or the latest ‘news’ from leaders gathered in Davos, that caused bond yields to rise once again?

/ 22nd January 2024