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Stick to the Plan Brighter days for markets; returns were strong across the board last week, thanks to central bank messaging. The Bank of England (BoE) “has done its job” according to Governor Bailey, and “we are not seeing a lot of...

Overview: Rates up, down, and going sideways Bond prices slid last week while consolidation continued in the global equity markets. Notably, Japan was weaker and US large caps largely unchanged. There was a sense of disappointment, that left investors wondering if optimism...

Overview: At least currency markets noticed the budget Markets gained again last week, with the S&P 500 hitting another all-time high. But thanks to sterling gaining 1.5% against the US dollar, our table shows negative index returns. Sterling strength may be partly...

Overview: Winners and losers of stabilising yieldsLast week was one of positive price action in equities, although the US mega-caps did less well, while bond markets were rather stable. Indeed, stable bond markets are one of the reasons why equity markets can...

Overview: M&A activity sets growth against valueEquities moved higher again last week, with gains made across global markets. Even China put in another week of positive returns following the largest ever cut to the five-year housing loan prime rate (admittedly only 0.25%)....

Overview: The UK is not growing in real terms or nominal termsThe UK is in a technical recession, defined as two quarters of real growth contraction. Meanwhile, last week’s release of UK jobs market data for December showed surprising tightness. The unemployment...

Overview: are US stocks bubbling up?Last week, the US large-cap equity market shook off the rest of the world, and the S&P 500 marched to another new milestone, trading above 5,000 for the first time. But the stand-out performer of the week...

Overview: Central banks challenge goldilocks assumptionsSurprisingly decent monthly returns were soured on the last day of January when the US Federal Reserve dampened the mood by repeating the message that rate cuts will begin later than markets anticipate. That this reiteration led...

Overview: Positive growth sentiment returnsAfter January’s bumpy start, and the volatile two weeks that followed, it looks like investors are finding their feet again. Almost entirely across the board, regional equity markets are up another healthy amount, with even China managing another...

Overview: ‘Lower, slower’ replaces ‘Higher for longer’Positive sentiment, driven by expectations of an imminent and significant onset of rate cuts, began to wane last week, and global capital markets resumed their volatile path of last year. The combination of a distinct slowing...

Overview: a bumpy upwards path aheadThe equity market’s New Year malaise lasted no longer than usual. Last week, European equities recovered the previous week’s losses while US indices moved ahead smartly. However, softness in global banks hit the FTSE 100, as did...

Overview: After the party, the hangover After the Christmas party, January perhaps started with a bit of a hangover. After an exceptional last two months of 2023, both equity and bond prices fell back last week as trading volumes normalised. UK and...

Policy and politics set to play a pivotal role in 2024 Heading into 2024, capital markets are in a somewhat contradictory position. Global growth has been slow (and in some places negative) for some time, while central banks have raised interest rates...

Overview: activity (and growth) slows down as December beckons The US-centric nature of global markets means Thanksgiving week tends to be quiet. Things should pick up this week, but markets will likely be decreasingly busy over the next four weeks. However a...