Interest rates rise around the world

Fed raises rates by 50 bp Markets were choppy during May as investors’ ongoing preoccupation over inflation was compounded by a raft of interest rate increases. The US Federal Reserve (Fed)  raised its key interest rate by 50 basis points during May to a range of 0.75% to 1%. Fed officials are set to implement … Continue reading “Interest rates rise around the world”

Global update

Inflation triggers concerns over growth Investor sentiment was undermined during April by concerns over inflation, fears relating to the war in Ukraine, and worries about the wider economic impact of Covid outbreaks in China. The International Monetary Fund (IMF) cut its forecast for global growth from 4.4% to 3.6% this year and from 3.8% to … Continue reading “Global update”

Ukraine and inflation share the spotlight in March

Question-marks over global growth Alongside the heavy human cost of Russia’s war in Ukraine, the Organisation for Economic Development (OECD) issued a warning about the economic impact. The crisis is set to drive up the rate of global inflation by around 2.5%, with high prices for oil, gas and wheat likely to persist. Many large … Continue reading “Ukraine and inflation share the spotlight in March”

Global stock markets fell as Russia moved on Ukraine

Investors experienced fresh market volatility towards the end of February as global financial markets reacted to Russia’s invasion of Ukraine and widespread government sanctions imposed on Russian financial institutions and oligarchs.  European Commission President Ursula von der Leyen warned: “These sanctions will suppress Russia’s economic growth; increase the borrowing costs; raise inflation; intensify capital outflows; … Continue reading “Global stock markets fell as Russia moved on Ukraine”

A volatile start to 2022

Widespread declines in January Leading equity markets generally fell during January amid concerns over the prospect of higher interest rates in the US, the impact of the Omicron variant, and mounting tensions between Russia and Ukraine. The Vix Index – which tracks expectations of future volatility – rose to its highest level in over a … Continue reading “A volatile start to 2022”

Higher interest rates on the horizon

Global Market Review A positive finish to 2021 Despite the spread of the Omicron variant of Covid-19, major equity markets around the world ended 2021 in positive territory, boosted by mounting hopes that the variant would prove less serious than initially feared. In the US, the Dow Jones Industrial Average Index rose by 5.4% during … Continue reading “Higher interest rates on the horizon”

Economic Review – November 2021

Inflationary pressures mount Official statistics show the UK headline rate of inflation now stands at a 10-year high, with surveys pointing to further upward pressure as firms continue to report rapidly-rising cost burdens. Data released last month by the Office for National Statistics (ONS) revealed that the Consumer Prices Index (CPI) 12-month rate – which … Continue reading “Economic Review – November 2021”

Inflationary headaches intensify

Global Market Review Omicron variant hits sentiment Global equity markets generally fell over November as investors digested new of the discovery of the new “Omicron” variant of the Covid-19 virus in South Africa, which triggered concerns that the economic recovery might be derailed. Federal Reserve (Fed) Chair Jerome Powell warned that the emergence of the … Continue reading “Inflationary headaches intensify”

Higher inflation for longer

Global Market Review Intensifying inflationary pressures The International Monetary Fund (IMF) warned that the world is facing inflationary pressures that will be “higher and longer than expected”. During October, US Federal Reserve Chair Jerome Powell commented: “We now see higher inflation and the bottlenecks lasting well into next year … I do think it’s time … Continue reading “Higher inflation for longer”

Three reasons why stock markets can power onwards

A lengthy bull market is always nerve-wracking. Investors start to fret on valuations, on earnings, on the strength of economic growth. As valuations creep higher, but economic growth remains strong, we look at the bull and bear case for equities today. First, we examine three reasons why investors could be cheerful about the prospects for … Continue reading “Three reasons why stock markets can power onwards”