Weekly Market Update: US inflation data and Ukraine tensions unsettle markets

Mon 14 Feb 2022

Market Update

Equity markets were rocked last week, as inflation in the US surged past estimates to 7.5%, causing yet more problems for the Federal Reserve in their attempts to combat inflation without triggering a market shock. To further add to economic uncertainty, the White House also signalled that an imminent invasion of Ukraine by Russia was becoming increasingly likely, triggering a sell-off in US equities on Friday afternoon. The build-up of Russian troops on the Ukrainian border has caused many NATO member countries great concern, with UK nationals now being advised to evacuate Ukraine immediately. US equities finished the week down -2.3% in Sterling terms, whilst Europe did not have the chance to catch up with Friday’s price action; up +0.3% for the week. The UK concluded last week in positive territory, up +1.9%, whilst emerging markets and Japan also posted gains of +1.1% and +0.4% respectively. Yields continued to climb across the globe on the expectation of higher interest rates, with the UK 10Y rising by 13.4 bps, finishing the week at 1.55%. Oil continued to rally to $94.4 per barrel on further tensions in Europe, whilst gold also benefited from increased economic uncertainty, up +2.8% for the week in US Dollar terms.

CIO Analysis

Asset Allocation

Last week saw the US registering the highest headline inflation number in over 40 years, 7.5%. Equity and bond markets roiled, with the US 10-year Treasury yield rising above 2% and the S&P 500 shedding nearly 2% for the week. Currently, markets are pricing in nearly more than six rate hikes by the end of the year instead of less than two, three months ago. To be sure, the Fed’s communications have been much more reserved, with even the most hawkish officials expecting four to five hikes during the year.

Is the market overreacting, or is the Fed so far behind the curve? The truth is no one knows at this point. No one is an expert on inflation, and certainly not the kind of inflation we are currently experiencing.

For a generation that has only experienced the benefits of globalisation, inflation is a riddle, wrapped in a mystery, inside an enigma. Twenty-two years of falling prices, twelve of which saw muted consumer demand and preference for saving overspending had ostensibly consigned inflation to history.

In fact, “history” is the operative word. The swift rise in inflation we are seeing today can only be found near, or around very significant historical events. For inflation to rise over 4% in a single year and stay high for more than 3-4 consecutive months, one would have to travel back fifty years to 1973.

The great Milton Friedman, the first major economist of the Monetary Era suggested that “inflation always and everywhere is a monetary phenomenon”. This would imply that interest rates would be the most appropriate tool to fight it. However, and with respect to the Nobel Laureate, this aphorism, which seems to be anchored in many an investor’s and central banker’s thinking, is probably wrong.

If we take US numbers, the first major inflation surge of the century came in 1916. This was the year when America got involved in the First World War. Supply shocks from a devastated European continent drove inflation higher. The next episode took place in 1922. After another collapse in supply, Europe was in disarray, and it followed a massive deflationary episode. Similarly, inflation in 1933-34 came after a significant deflationary episode, following the Great Depression. Inflation in 1941-1942 was again about the US entering a World War, and in 1946 it was about consumer and industrial demand after the European reconstruction was underway. In 1950, the Korean war and a prior deflationary episode drove an inflation surge. In 1973, the Yom Kippur war, coupled with a change in the global economic system from the Gold Standard to Monetarism, fuelled another inflationary episode. Independent central banks and the fall of the Iron Curtain as well as a new status quo in the Middle East, brought nearly unprecedented peace, the “Pax Americana”. With it, a modicum of macroeconomic stability.

It has been nearly fifty years that developed markets haven’t experienced a similar inflation rise like in 2021-22. It becomes apparent that only major global events can cause such sharp rises in price. The response by all nations to the pandemic, which essentially meant shutting production and curtailing movement, had about the same effects as wars of the past.

Friedman described inflation in a monetary world at equilibrium. That sort of inflation never truly materialised. The pandemic, along with high debt levels and a market dependency on low rates, threw the world decidedly off-balance.

At the risk of angering the ghost of the great economist, our observations about this current bout of inflation are not monetarist in nature. We believe that:

When inflation is concerned, everyone is a novice. Especially since such a fast build-up of prices hasn’t happened in fifty years. This means that central banks and policymakers are likely to get it wrong before they get it right.
Inflation is everywhere and always… different. Each major episode has significant differences from the past. It is really the first time that this event did not involve some sort of general conflict, in over one century of data.
Supply disruptions historically cause much more inflation than demand surges. This sort of inflation is caused mainly by disruptions, a major departure from the status quo. When western governments closed borders and shut off production, they were responding to a crisis, but they never thought they would have to deal with such a disruption.

There’s a strong possibility we may see the end of the episode soon. We are already ten months into this event. Historically, all of the events described lasted about 11-14 months. This time, this should be more the case as no mid or post-war rebuilding is required. The underlying infrastructure has not been destroyed, just hobbled from erratic demand and supply. We have evidence that supply chains are mending and adapting.

Vaccination levels are high in many parts of the world, and more cures are made available. One after another, western governments declare their intention to drop measures and movement limitations. In all probability, the “Great Lockdown” is well behind us. Meanwhile, unless the Ukrainian crisis escalates into a fully-fledged standoff between Russia and NATO, energy prices should start to come off.

As for demand? We don’t feel that demand conditions will persist over the longer term. The current propensity towards higher wages is a confluence of pandemic-related dwindling labour supply and panic from rising supply-side inflation. As the pandemic recedes, both of these two factors should ease. As for consumer demand? We don’t have any evidence that would suggest that the pre-pandemic “Secular Stagnation” backdrop of consumer behaviour has changed materially.

The larger question is whether there can be a global policy approach to repair damaged supply chains quickly. This would entail lifting travel banks, tariffs, taxes, barriers to facilitate a speedy recovery of goods and services in their pre-pandemic condition. We feel that, given the current geopolitical environment, this is a very low probability event. Thus, on the one hand, the rate by which prices rise could start to decline by the next quarter, if history is any guide. On the other, however, supply chains could take long to mend, and overall price levels could remain elevated versus pre-pandemic numbers.

– David Baker, CIO

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The fallout from the invasion of Ukraine continued to rock markets last week, as the attack on the Zaporizhzhia nuclear plant gained widespread media attention and represented a further escalation of the conflict. Most major indices posted losses last week, although geographical location significantly influenced price action. US stocks remained relatively stable, down -0.1%, whilst European markets suffered losses of -9.1% on concerns over rising energy prices and the potential for further supply chain disruption. The risk-off sentiment and subsequent flock to safety by investors saw bond yields fall. The US 10Y fell 23.1 bps, finishing the week at 1.731%. The German 10Y Bund recorded similar inflows as the yield crossed back into negative territory, finishing the week at -0.069%. Russia’s role in the global economy as exporter of many commodities has encouraged sharp price rises. Oil rose a staggering +26.4% to $125.5 per barrel, whilst metals returned +12.0% in GBP terms. Gold also performed well, up 5.5% on the week. The US Dollar also benefitted from the safety trade and performed well relative to the Euro and Sterling.

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Equities in most major markets posted gains last week with global stocks up +3.3% in Sterling terms, amid continued strong investor sentiment. US stocks were up +2.0% on the back of positive earnings surprises, a dovish Fed meeting and strong employment data. EU stocks were up +3.2%, with the ECB insisting that rates will stay low for the near future. UK stocks were up +1.0% as the BoE unexpectedly kept interest rates unchanged, which caused Sterling to fall -1.4% against the US Dollar. Globally, consumer discretionary and IT were the best performing sectors while financials and healthcare were the worst performing. The US 10Y Treasury yield was down 10.6bps finishing the week at 1.455%, while the UK 10Y yield was down 19.0bps reaching 0.845%. In US Dollar terms gold was up +3.4%, while oil was down -1.3% to $81.2 per barrel.

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Equities in most major markets posted gains last week with global stocks up +1.4% in Sterling terms, amid stronger investor sentiment. US stocks were up +2.0% as positive earnings surprises continued during the busiest week of the earnings season. EU stocks were up +1.2% amid strong corporate earnings, while UK stocks were up +0.5% as the OBR revised its outlook for the UK economy upwards. Globally, consumer discretionary and IT were the best performing sectors while financials and energy were the worst performing. The US 10Y Treasury yield was down 8bps finishing the week at 1.552%, while the UK 10Y yield was down 11.1bps reaching 1.034%. Sterling was down -0.5% against the US Dollar. In US Dollar terms gold was up +0.1%, while oil was down -0.6% to $84.2 per barrel.

Weekly Market Update: Santa rally, or not, we remain equal weight

Equities in most major markets posted gains last week with global stocks up +1.4% in Sterling terms, amid stronger investor sentiment. US stocks were up +1.7% as positive earnings surprises continued for a second week in a row. EU stocks were up +1.2% despite heightened concerns that a rate hike could come sooner than expected, while UK stocks were down -0.4% as the latest inflation readings remained above the BoE’s 2% target. Globally, most sectors posted gains with healthcare and utilities being the best performing, while materials and telecoms underperformed. The US 10Y Treasury yield was up 6.2bps finishing the week at 1.632%, while the UK 10Y yield was up 3.9bps reaching 1.145%. Sterling remained flat against the US Dollar. In US Dollar terms gold was up +1.4%, while oil was up +2.9% reaching $84 per barrel.

Weekly Market Update: Look it’s China

Equities in most major markets posted gains last week with global stocks up +1.1% in Sterling terms, amid some improved economic figures. US stocks were up +0.8% as the earnings season kicked off strongly with major banks beating earnings expectations. EU stocks were up +1.6% despite a contraction in the industrial sector while UK stocks were up +2.0% amid strong macroeconomic data showing output growth during August. Globally, almost all sectors posted gains with cyclicals outperforming relatively versus more defensive stocks. The US 10Y Treasury yield was up 3.8bps finishing the week at 1.574%, while the UK 10Y yield was up 5.6bps reaching 1.105%. Sterling rose by +1.0% against the US Dollar. In USD terms gold pulled back by -0.4%, while oil was up by +2.5% reaching $82 per barrel.

Weekly Market Update: Port congestion isn’t dealt with interest rate hikes

Equities in most major markets edged higher last week, partly offsetting the previous week’s losses, with global stocks up +0.3% in GBP terms. US stocks were up +0.4% despite the disappointing jobs report published on Friday. European stocks were up +0.2% amid high volatility while UK stocks were up +1.0% despite the BoE’s new Chief Economist raising the alarms on inflation’s persistence in the coming months. Globally, energy stocks outperformed all sectors for a fifth week in a row, posting solid gains of +4.9%, followed by financials, utilities and materials. The US 10Y Treasury yield was up 15.0bps, finishing the week at 1.612%, while the UK 10Y yield was up 15.6bps reaching 1.158%. Sterling rose by +0.5% against the US Dollar. In USD terms gold pulled back by -0.6%, while oil was up by +4.1%, reaching $81 per barrel.

Weekly Market Update: Reducing to equal weight

Equities in most major markets pulled back amid inflation worries, persistent supply side issues and more contractionary anticipated monetary policy - global stocks were down -1.6% in GBP terms. US stocks were down -1.2% as uncertainty loomed around the federal debt ceiling and the approval of the USD 1 trillion infrastructure bill. EU stocks were down -1.2% amid higher than expected inflation while UK stocks were down -0.3% despite an upward revision of latest GDP figures. Globally, Energy stocks continued their upward trend for another week in a row posting solid gains of +4.9%, with the rest of the sectors pulling back. The US 10Y Treasury yield was up 1.2bps finishing the week at 1.465%, while the UK 10Y yield was up 8.2bps reaching 1.00%. Sterling fell by -1.0% against the USD. In USD terms gold rose by +1.6%, while oil was up by +3.5%.

Fight the Fed… when it’s hawkish (and a few words about Germany)

Stock indices in most developed market regions rebounded strongly after Monday’s acute sell off amid fears of Evergrande’s default - global stocks were up +0.7% in GBP terms. EU stocks were up +1.7% despite business activity losing steam, while US stocks rose +1.0% after recording their biggest daily drop since May 12th, on Monday. UK stocks rose by +1.0% as the BoE announced that rates will be unchanged; however holding a more hawkish stance. Globally, Energy stocks continued their upward trend posting solid gains of +4.0% followed by financials, IT and consumer discretionary. The US 10Y Treasury yield was up 8.9bps finishing the week at 1.453%, while the UK 10Y yield was up 7.4bps reaching 0.922%. Sterling fell by -0.4% and -0.3% against the USD and the Euro respectively. In US Dollar terms gold rose by +0.2%, while oil was up by +3.4%.

Weekly Market Update: China’s ‘LTCM moment’ may be the least of its problems, and ours.

Global stocks were relatively unchanged in Sterling terms (down -0.7% in USD terms) last week amid investors’ skepticism around supply chain issues hampering growth, elevated valuations and future monetary policy. Japanese stocks posted gains for a consecutive week, rising by +1.1%, as campaigning began for the next president of Japan’s ruling LDP. UK stocks fell by -0.9% amid higher than expected inflation, while US stocks were up +0.2% driven by a strengthened US Dollar. Globally, all sectors exhibited losses apart from energy stocks which posted solid gains of +2.8%. The US 10Y Treasury yield was up 2.1bps finishing the week at 1.363%, while the UK 10Y yield was up 8.9bps reaching 0.848%. Sterling fell against the US Dollar by -0.7% and remained flat against the Euro. In US Dollar terms gold lost -1.2%, while oil was up by +4.0%.

Weekly market update: How much longer can liquidity mask reality?

Global stocks were down -1.1% in Sterling terms last week amid fears of momentum fading and growth concerns due to the persistence of supply chain issues. Japanese stocks were the only region to post gains, rising by +3.8% in Sterling terms, buoyed by news of prime minister Suga stepping down and expectations of further stimulus. UK, US and European equities were all down -1.5% driven by inflation concerns and uncertainty about the economic outlook. Globally, all sectors exhibited losses apart from consumer discretionary. The US 10Y Treasury yields were up 1.7bps, finishing the week at 1.343%. German 10Y Bund yields were up +2.6bps to -0.332% after the ECB announced it would reduce the pace of its pandemic asset purchasing programme. Sterling fell against the US Dollar by -0.2% and rose by +0.4% vs the Euro. In US Dollar terms gold lost -2.1%, while oil was up by +0.7%.

Weekly market update: The Fed is not the answer to everything!

US, UK and European equities were relatively unchanged in Sterling terms last week, faring -0.1%, +0.1% and -0.1% respectively, amid concerns that the rate of global growth could start decelerating. Japanese equities were up +4.0% despite the resignation of Prime Minister Yoshihide Suga, while emerging market equities were up +2.7%, positive for a second week in a row after the Chinese tech sector had fallen significantly in previous weeks. Globally, stocks were up +0.3%, with energy and financials being the only sectors exhibiting losses. The US 10Y Treasury yield was down -1.5bps finishing the week at 1.322%. The German 10Y Bund yield was up +6.2bps amid higher than expected inflation in the euro area. Sterling was up +0.8% against the US Dollar and unchanged relative to the Euro. In US Dollar terms gold lost -0.1%, while oil prices rose slightly by +0.1%.

Weekly Market Update: markets take a step back

Market Update US equities ended the week on a positive note, but the omnipresent uncertainties of the Delta variant, Fed tapering, and geopolitical issues put the other major indexes in the red for the week. Emerging market equities were down -2.9% as China’s continued regulatory crackdown on big businesses, mainly the technology sector, remained a […]

Weekly Market Update: equities continue their rally, yields end the week lower

Market Update Global equities rallied again last week, however this time it was Japanese equities leading the way, up +2.1% in Sterling terms, having lagged behind in recent weeks. UK and European equities were also up +1.7%, with US equities gaining +0.8%. The only region to fall was emerging markets, down -0.8% in Sterling terms. […]

Weekly Market Update: US equities near all time highs as earning beat expectations

Market Update Global equities rallied last week, with US equities leading the way, up +1.4% in Sterling terms, boosted by 87% of US firms beating earnings expectations. European equities were up a similar amount in local terms, however up only +0.4% in Sterling terms. UK equities were up +0.2%, however Japanese equities fell -1.3%. With […]

Weekly Market Update: developed market stock indices modestly retreat from previous week’s highs

Market Update Developed markets were off slightly over the course of the week. US technology companies registered a new high during the week as Microsoft and Alphabet recorded strong Q2 earnings, but Amazon’s miss on revenues pulled the technology index down slightly on Friday. In the US and abroad the rise of the delta variant […]

Weekly Market Update: stocks rebound on strong quarterly earnings

Market Update Following a tumultuous start to the week, global equities rallied to finish in positive territory. The decision by OPEC+ to increase production contributed to markets selling-off on the Monday, with energy the worst performing sector for the week, while most other sectors recovered to finish up or almost flat. In particular telecoms, IT […]

Weekly Market Update: stocks retreat from previous highs

Market Update Global equities fell -0.3% last week in Sterling terms, with a stark dispersion in returns. UK equities fell the most, down -1.6%, with US and European equities falling -0.4% and -0.3% respectively. Energy stocks were the worst performing globally, with financials also weak, both of which contributed to the UK’s underperformance. However Japanese […]

Weekly Market Update: a mixed week for markets

Market Update In a week where global equities fell -0.1%, European stocks were flat and UK stocks rose +0.1%, we shouldn’t be deceived by the apparent calm. Global equities were shaken on Thursday due to concerns about slowing global growth and this caused a sharp sell off across developed markets. However, on Friday the realisation […]

Weekly Market Update: major U.S. stock indices post record highs, bond yields pull back

Market Update Global yields fell last week on concerns about the spread of the delta variant and its possible effect on the ability of economies to recover from the pandemic. US 10Y yields fell 10bps to 1.424%, with UK and German 10Y yields also falling 7.5 and 8bps respectively. The result for global stocks was […]

Weekly Market Update: Markets rise as Powell reiterates patient approach

Market Update Global equities rebounded last week after a period of weak performance. US equities led the way in Sterling terms, up +2.1%. UK, European and emerging market equities gained +1.8%, +1.1% and +0.8% respectively. Although up in local terms, weak Yen performance saw Japanese equities fall -0.3% in Sterling terms. US equities are now […]

Weekly Market Update: sentiment wobbles amid risk of the Fed raising rates

Market Update Global equity markets fell last week in local terms, selling-off on hawkish comments from the Federal Open Markets Committee that suggested two interest rate hikes in 2023. Further hawkish comments from FOMC members, including the possibility of a tapering of asset purchases, were also seen as contributing to weak equity performance. What was […]

Weekly Market Update: Stocks Shrug Off Higher Inflation

Market Update Global markets were again positive for the week, although with global yields falling markedly, it was the growth and bond-proxy sectors which were positive, with healthcare and IT the standout gainers. Meanwhile cyclical stocks, which have seen upturned performance since the positive vaccine news in November, had a poor week. Financials, materials and […]

Weekly Market Update: Markets Provide Contrasting Inflation Signals

Market Update It was a steadily positive week for equity markets last week, with all major regions gaining in Sterling terms. Emerging markets equities were the strongest performing, up +1.8%, while Yen strength saw Japanese equities returning +1.2%. Energy was the strongest performing sector globally, as oil prices reached their highest level in two years. […]

Weekly Market Update: Markets Grapple With Eventual Tapering of Asset Purchases

In a relatively volatile week of equity market trading, ultimately most major equity markets ended nearly unchanged. Following on from US inflation last week, there was increased focus on the UK and EU readings this week, with investors looking for any evidence of a potential shift in monetary policy. US equities fell most of major equity markets for British investors, down -0.7% in Sterling terms, although more modestly in local currency terms. UK equities ended a mixed week down -0.2% as the effects of stronger than anticipated labour market data and inflation played out. Emerging markets and Japanese equities saw a role reversal last week as they moved from laggards to leading markets, with emerging market equities providing the best returns to Sterling investors up +1.4% on the week. European equities rose +0.6% in Sterling terms. The US 10Y yield fell -0.7bps to 1.6%, while the UK 10Y fell -2.7bps to 0.8%. In commodity markets, gold rose +1.7%, while oil fell -2.9% to $64.1 a barrell.

Weekly Market Update: US Inflation Unnerves Equity Markets

Global economies are reopening, and moving into the recovery phase, this pickup in activity has lead investors to question the potential impact on inflation. Investors are cautious of whether inflationary effects will be transitory or long-lasting. The US inflation reading unnerved markets and all major equity markets fell last week. US equities fell -2.2% in Sterling terms, partly driven by currency effects, markets had sold off sharply at the start of the week before recovering in the latter half. UK equities, which typically move inversely to Sterling, due to high levels of overseas earnings, fell -1.2%. Japanese equities fared worst last week, caught in global equity volatility and increased lockdowns, falling -4.0% last week. Despite strong Chinese equity performance, emerging market equities fell -3.8% in Sterling terms. The US 10Y yield rose 5.1bps to 1.6%, while the UK 10Y rose 8.2bps to 0.9%. Both gold and oil were nearly unchanged, falling -0.2% and -0.1% on the week respectively.

Weekly Market Update: Mixed Results in Equity Markets as Economies Reopen but US Jobs Disappoint

With many regions operating a shortened trading week, returns varied significantly across major equity markets. UK equities provided the best returns to Sterling investors, up +2.4%. The rise in UK equities was helped in part by rising commodity prices, with miners and energy firms benefiting from rising metal and oil prices. European equities provided the next best returns, up +1.7% in Sterling terms. US equities rose a modest +0.2% in Sterling terms, though up +1.3% in local currency terms, as the rotation from growth to value impacted returns. Emerging markets fell -1.0% in Sterling terms. Japanese equities rose +1.3% in Sterling terms, not quite enough to move the region into positive territory year-to-date. The US 10Y yield fell temporarily on bad jobs data, although recovered somewhat, ending down 4.9bps to 1.6%, while the UK 10Y fell 6.7bps to 0.8%. Gold rose +2.4% on the week, while oil rose a further +1.0% to $65.4.

Weekly Market Update: Consumer-Led Recovery at Close to Fastest Pace in Modern History

Once again many major equity markets finished the week not far from where they started. Market attention was squarely focused on the Federal Reserve, where chairman Jerome Powell promised not to raise rates in the near term; as a consequence, markets did not sharply react in either direction. US equities were flat in US Dollar terms, but up +0.2% in Sterling terms. UK equities were the best performing region, up +0.5% last week. European equities fell for the second consecutive week, down -0.8% in Sterling terms. Emerging markets fell -0.2% in Sterling terms. Japan was the clear laggard, where earnings failed to meet expectations and the Bank of Japan kept policy unchanged. Japanese equities fell -1.9% in Sterling terms. The US 10Y yield rose on improved economic data, up 6.8bps to 1.6%, while the UK 10Y rose 9.8bps to 0.8%. Gold fell -0.3% on the week. The better than expected economic data helped oil to rise +2.4% last week to $64.4.

Weekly Market Update: Indian Covid Crisis Captures Attention of Markets

Equity markets ended the week largely unchanged, with the largest movements seen in Japanese and UK stocks. UK equities fell -1.1%, driven in part by a falling oil price, as the global economic outlook increasingly uncertain, with clear inequality in the vaccination progress between regions, dampening expected demand for oil. US equities fell -0.3% in Sterling terms, with plans to raise capital gains tax only making a slight impact on US markets. European equities rose +0.2% in Sterling terms due to currency effects, having fallen -0.4% in local currency terms. Emerging markets were the only risers in local currency terms, and were up +0.1% in Sterling terms. Globally the best performing sector was healthcare, whilst energy was the worst performing. The US 10Y yield fell slightly by 2.2 bps to 1.6%, while the UK 10Y fell 2 bps to 0.7%. Gold fell -0.2% on the week. Oil fell as the economic outlook deteriorated, down -1.7% on the week to $62.1.

Weekly Market Update: Caveat Emptor

UK equities reached the highest level in over a year as part of a broad-based rally in equities globally. Equity markets continue to benefit from increasing risk appetite as investors become increasingly bullish on a 2021 recovery. UK equities rose +1.6%, although it remains one of just a few regions not back to all time highs.US equities rose +0.7% in Sterling terms, the stronger growth moderated by Sterling rising +0.9% against the US Dollar. Globally the best performing sector was materials, whilst telecoms lagged other sectors. The US 10Y yield fell 7.9 bps to 1.6%. The UK 10Y yield was more or less unchanged, down just 1.0 bps to 0.8%. Gold rose +1.1% on the week, although it remains -7.6% so far this year. Oil rose +5.7% last week to $63.1 a barrel. Oil is up +28.5% this year. The jump in oil prices comes in spite of global coronavirus cases beginning to rise in many regions, with several European and Asian economies looking likely to increase the stringency of lockdowns.

Weekly Market Update: Rational Exuberance

Markets opened positively this week thanks to the impact of stronger than anticipated US payrolls data released over the bank holiday. Meanwhile, the EU vaccination campaign is finally beginning to pick up pace. US equities rose +3.4% in Sterling terms, reaching further record highs. UK equities rose +2.7% in the final week before the second phase of lockdown easing. European equities rose +3.2% in Sterling terms, supported by the increased likelihood of fiscal stimulus in the region. Emerging market equities fell in local currency terms, but gained +0.1% in Sterling terms. Globally, the best performing sector was information technology, whilst energy was the worst performing. The US 10Y treasury yield fell slightly down 6.3 bps to 1.7%, while the UK 10Y gilt yield fell 2.1 bps to 0.8%. Gold rose +1.6% last week. Oil fell for the second week, down -2.8% to $59. Oil has fallen almost -20% from its earlier surge, driven partly by a more challenging route out of the pandemic than originally forecast.

Weekly Market Update: Suez Canal Blockage Adds to Supply Chain Strains

Relative to the year so far, last week saw quite a heterogeneous response to news by markets. On one hand there is continued and growing positivity surrounding the opening of economies, but this has lead to some inflationary concerns. Meanwhile, the Suez Canal blockage raised concerns about supply chain disruptions. US equities rose +2.2% in Sterling terms, hitting record highs, helped by a more optimistic vaccine schedule from President Biden. UK equities rose a more modest +0.6%. Globally the best performing sectors were more defensive names such as consumer staples and utilities, whilst telecoms was once again the worst performing. Japanese equities fell -1.5%, moving back into contractionary territory this year. The US 10Y yield fell slightly, down 4.5bps to 1.7%, while the UK 10Y fell 8.1bps to 0.8%. Neither gold nor oil were much changed, both down -0.1% on the week, with oil trading just under $60 a barrel.

Weekly Market Update: The Yield, Not “Inflation” Will Determine the Rotation

Equity market gains early last week were, broadly speaking, eroded as bond yields continued to rise, reaching one-year highs. Amid falling oil prices and rising political uncertainty caused by potential bans on vaccine exports coming out of the EU, many major equity markets fell last week. US equities fell -0.5% from record highs in Sterling terms, despite the country surpassing 100 million vaccinations on Friday. UK equities fell -0.7%, now down -2.4% from their 52-week highs in January. Globally the best performing sector was healthcare, whilst energy, due to oil prices, was the worst performing. Japanese equities rose +3.6% and are the best performing major equity markets this year. The US 10Y yield continued its rise up 9.6bps to 1.7%, while the UK 10Y rose 1.6bps to 0.8%. Gold rose +1.3% on the week. Oil has seen back-to-back weekly declines, down -6.1% to $61.2 a barrel, due to a glut of supply and weakening demand forecasts.

Weekly Market Update: Stocks ended the week near all time highs

A positive week for equities saw all major equity markets close the week positive in local currency terms. With Sterling continuing its bullish start to the year this pushed EM equities down to a flat week in Sterling terms. US equities rose +2.0% in Sterling terms, hitting record highs. US equities were helped by falling bond yields, from Tuesday, which helped boost equity investor sentiment. UK equities rose +2.1%. Globally the best performing sector was consumer discretionary, whilst telecoms was the worst performing. Japanese equities rose +1.5%, erasing their losses year-to-date. The US 10Y yield continued its rise, although more modestly, up 5.9 bps to 1.6%, while the UK 10Y rose 6.6bps to 0.8%, reversing last week’s fall. Gold rose +0.8% on the week. Oil fell, after last week’s strong rise, down -1.4% on the week to $65.8. Oil is up +32.6% on the year, highlighting the extent to which vaccination programmes are increasing forecasters’ outlooks for economic activity later this year.

Weekly Market Update: Investors dilemma: Cheaper bonds or returning dividends?

Markets returned to positive territory this week, supported in part by progress on the Biden stimulus bill. However, chair of the Federal Reserve Jerome Powell’s speech, with a lack of updates to current policy, disappointed investors leading to a sell-off on Thursday afternoon. US equities rose +1.7% in Sterling terms. UK equities rose +2.5%, with UK equity markets benefiting from rising oil prices. Emerging Markets grew +0.9% in Sterling terms, although this was a more moderate +0.1% in local currency terms. Globally the best performing sector was Energy, whilst IT was the worst performing, as the rising yield environment impacted valuations. Japanese equities rose +1.0%. The US 10Y yield continued its rise, up 16.1 bps to 1.6%, while the UK 10Y fell 6.4bps to 0.8%. Gold fell -1.1% on the week. Oil rose sharply, up +8.4% on the week to $66.5 following the OPEC meeting where it was decided to hold production at current levels, when a rise in production had been anticipated.

Weekly Market Update: Bonds Sell Off Spills Over to Wider Market

A significant rise in US Treasury yields unsettled markets last week. US equities fell -1.9% in Sterling terms, with Tech stocks suffering their worst week in nearly six months. UK equities fell -1.9%, with Energy and Financials the only two positive sectors for the week. Emerging Markets suffered the greatest sell-off, having led global equity markets so far this year. UK and Emerging Markets are the only major equity markets still positive for the year in Sterling terms. Globally the only positive sector was Energy which was supported by rising oil prices. Investors will keep a keen eye on the OPEC+ meeting this week for any indication of increased oil supply. Japanese equities fell -2.4% in Sterling terms, the worst performing region year-to-date for UK investors. The US 10Y yield continued its rise, up 6.9 bps to 1.4%, at one point hitting 1.6%, and the UK 10Y rose 12.2 bps to 0.8%. Long-term yields are now trading at their highest level since the pandemic. Gold fell -2.3% on the week, while Oil rose +4.4% to $62.7.

Weekly Market Update: Markets Rally for Second Week as Inflation Expectations Return

Global equities continued last week’s gains, rising +0.7% in Sterling terms. UK equities, amongst the top performing major markets, rose by +1.6%. They were supported by rising oil prices and positive returns from energy companies, as the domestic market is overweight to the Energy sector. European equities, amid high volatility, were up +0.8%, due to improved coronavirus infection rates and hopes of a large U.S. economic stimulus. US equities rose +0.4%, the worst performing major region. Globally, Energy was the best performing sector whilst Utilities and Cons. Discretionary were the only sectors to finish the week down. Emerging Markets maintained their strong performance since the start of the year, posting gains of +1.5%. Sterling rose +0.8% and +0.3% against the US Dollar and Euro respectively, continuing its strengthening trend this year. The US 10Y yield rose 4.5bps to 1.2% and the UK 10Y rose 3.5bps to 0.52%. Gold fell -2.0% on the week, while Oil rose +3.7%.

Weekly Market Update: Improving Economic Outlook and Falling Volatility Support Equity Markets

Global equities rebounded from their sharp sell-off last week, rising +4.0% in Sterling terms. US equities were some of the best performing, rising +4.5% and more than recovering the previous week’s losses in spite of weaker than anticipated labour market data. UK equities rose +1.3%, the worst performing major region. Energy particularly struggled, in spite of rising oil prices, as UK energy giants BP posted its first annual loss in a decade, while Royal Dutch Shell profits fell 71%. European equities rose +2.8%. Emerging Market equities fared best, up +4.8%, reverting back to their trend of equity leadership in 2021. Globally, all sectors were positive with the Technology sector the strongest. Sterling rose +0.2% and +1.0% against the US Dollar and Euro respectively, continuing its strengthening trend this year. The US 10Y yield rose 9.8bps to 1.16%, while the UK 10Y rose 15.5bps to 0.38%. Gold fell -2.0% on the week, while Oil rose +8.7%.

Weekly Market Update: Global Equities Slide as Volatility and Covid-19 Cases Rise

Global equity markets were down last week amid delayed growth recovery expectations. US equities fell -3.5% in Sterling terms, with volume skyrocketing mid-week to a record high of 23 billion share transactions as market attention centred on retail investors purchasing highly shorted stocks. UK equities fell -4.3% due, in part, to Energy underperforming other sectors. European equities fell -3.5% amid fear of a slowdown due to the pandemic, and delays in the distributions of vaccines. Emerging Market equities fared worst, down -4.7%, bucking a trend of strong performance since the start of the year. Globally, all sectors were down with the Energy sector performing the worst. Sterling strengthened up +0.2% and +0.4% against the US Dollar and Euro respectively. The US 10Y was down 2bps to 1.07%, while the UK 10Y rose 1.9bps to 0.33%. Gold fell -0.6% on the week whilst Oil fell -0.3%.

Weekly Market Update: Vaccine and Stimulus Sentiment Help Equities to Set New Highs

With the exceptions of the UK and Japan, equity markets were positive last week. Technology stocks performed particularly well in the US where Netflix was boosted by a larger than expected subscriber gain during the pandemic. US equities, up +1.4%, were supported by political tailwinds, with substantial stimulus expected under the new Biden administration. UK equities fell -0.6% due partly to Sterling strength, as a large portion of the index’s earnings are overseas, and Oil weakness. Globally, Telecoms and IT led whilst Financials and Energy lagged. Emerging Market equities continued their strong start to the year up +2.0% to a +7.7% rise year-to-date. The US 10Y was largely unchanged, the yield up 0.2bps to 1.086%. The UK 10Y rose +2.0bps to 0.31% on positive vaccine news and improved sentiment about the economic outlook in UK PMI data. Gold rose +0.9% on the week whilst Oil fell -0.7% to US $52.7.

Weekly Market Update: Disappointing US retail sales and mixed earnings results push stocks lower

Market Update Global equity markets were generally down last week, with weaker than expected earnings reports seeing a sell-off on Friday. The only positive regions in Sterling terms were Emerging Markets and Japan, both +0.1%. European equities fared the worst, down -2.1%, with the Euro falling -1.4% vs Sterling significantly contributing to the weak performance. […]

Weekly Market Update: Equity Markets Look Past Civil Unrest to Begin New Year Strongly

Market Update Major equity indices enjoyed a positive start to the new year. UK equities provided the best returns up +6.4% for the week. UK equities were supported by a steepening yield curve and rising oil prices, since the market is overweight to the Bank and Energy sectors. Globally, Energy was the best performing sector […]

Weekly Market Update: Major indices end the year on a positive note

Market Update Most major equity market indices ended the year on a positive note. Global stocks gained +0.2% in Sterling terms over the last two weeks of trading to close the year up +12.4% in Sterling terms. Over the year, due in large part to a Tech rally following the early pandemic crisis, US stocks […]

Weekly Market Update: Sterling Strength Erodes Equity Gains

Market Update A generally positive week for equities in local currency terms was slightly negative in Sterling terms as markets became increasingly optimistic about a UK trade deal with the EU, sending the Pound higher. UK equities were the notable exception for the week, though down only -0.1%. Overall, global stocks gained +1.7% in local […]

Weekly Market Update: Brexit Tempers Vaccine Regulatory Headwinds

Market Update Like clockwork positive vaccine news, this time FDA confirmation of Pfizer/BioNTech results, buoyed markets in the early part of last week. However some of these gains were reversed due to the worsening condition of both Brexit and Covid-19 cases. UK equities were flat for the week, however more domestically exposed mid-caps fell as […]

Weekly Market Update: Vaccine-driven exuberance drives markets despite rising Covid-19 cases and patchy economic data

Market Update Markets continued the rally stoked by the early November news of successful Covid-19 vaccines. US markets are now at all-time highs having rallied +1.7% last week, although US Dollar weakness meant the return for UK investors was +0.6%. UK equities were in fact the strongest performing major region, rallying +2.9%. Overall global stocks […]

Weekly Market Update: UK Equities on Track for Second-Best Month on Vaccine Rally

Market Update Once again vaccine optimism supported global equity markets; this time it was the turn of the AstraZeneca vaccine, which can be more readily stored and transported. Global equities rose +2.1% for the week in Sterling terms. Financials and Energy were the two best performing sectors, as both sectors would benefit greatly from a […]

Weekly Market Update: value stocks lead market rally on positive vaccine news

Market Update Global equities rose +0.4% in local currency terms, although currency movements eroded this gain for British investors, leaving global equities down -0.2% in Sterling terms. Equities were once again supported by vaccine news, with Moderna’s vaccine showing similar levels of efficacy to the already announced Pfizer data. European equities rose for the third […]

Weekly Market Update: Covid-19 vaccine breakthrough fuels global equity rally

Market Update Global equities rallied strongly last week on news that early data shows Pfizer’s Covid-19 vaccine, one of many in development, is effective in 90% of cases. Equities rallied sharply in the first half of the week before ceding some of their gains later on as attention turned back to the near-term, where Covid-19 […]

Weekly Market Update: Likely Biden Victory Helps Equities to Best Week in Over Six Months

Market Update Global equities rallied last week with US stocks in particular posting their largest weekly gains since April as investors reacted to the increased possibility of a divided government, with a potential Biden win and continued Republican control of the Senate. In Sterling terms US stocks were up +5.6% while both UK and Global […]

Weekly Market Update: Lockdowns and US Election Raise Market Volatility

Market Update Global equities suffered their worst week since March, with the sell-off attributed to renewed virus related lockdowns across most of Europe and the final stretch of the hotly contested US presidential campaign. Global and US equities were both down -5.0%. This was despite the fact that Tech giants Alphabet, Amazon, Apple and Facebook […]

Weekly Market Update: European Lockdowns Weigh on Equity Markets

Market Update European equities sold-off as economic data begins to point towards a stalling recovery and coronavirus infection trends point towards tighter restrictions. European equities were down -1.4% in local currency terms, narrowing to a -1.2% loss in Sterling terms. UK stocks improved in the second half of the week, buoyed by increased employment support […]

Weekly Market Update: Markets Mixed As Lockdowns Reimposed Over Second Wave Concerns

Market Update Global equities were narrowly down -0.3% on the week in local terms, however Sterling weakness once again boosted returns to British investors. The US was the best performing region, up +1.0% in Sterling terms. This coming week will kickstart earnings season in the US, where earnings are expected to fall sharply relative to […]

Weekly Market Update: Increasing Likelihood of US Government Trifecta Lifts Equity Markets

Read our Full Weekly Market Update Market Update A reduction in uncertainty in the United States helped US equities to their best week in three months, up +3.2% in Sterling terms, as investors begin to price in a Biden presidential victory. UK stocks looked past weaker than anticipated GDP growth to rally +2.0%. Investors appeared […]

Weekly Market Update: Rising Equities Shrug off Political Uncertainty

Read our full Market Update Market Update Major global markets were generally positive in local currency terms, but a strengthening Sterling, up +1.5% for the week against the US Dollar, eroded gains for British investors. US stocks recovered from their four-week losing streak to rise +1.5% in US Dollar terms, but would return -0.2% due […]

Weekly market update: stocks decline on fears of a second wave of covid and stimulus uncertainty

Read our full Market Update Week 39 Market Update Major global markets were negative in local currency terms, whilst a weaker Sterling which was down -1.3% for the week against the US Dollar and -0.4% against the Yen ensured some pockets of growth for British investors. US stocks moved into correction territory (down 10% from […]

Weekly Market Update: Virus Fear and Bank of England Comments Drag Down Equities

Read Our Full Market Update Market Update Globally stocks were negative in local terms for the second successive week, losing -1.2%. Sterling recovered some of its losses against the US Dollar, up +0.9% despite comments from the Bank of England suggesting an increased likelihood of rate cuts. UK stocks outperformed global stocks in Sterling terms, […]

Weekly Market Update: Stocks edge higher, bolstered by stumbling sterling

Read our full Market Update Week 37 Market Update Globally stocks were negative in local terms, losing -1.3% for the week. However Sterling weakness, which saw it worst week since March, saw global stocks rise +2.2% in Sterling terms. UK stocks performed well gaining +4.0% for the week, with Housebuilders and Healthcare both rising by […]

Weekly Market Update: Markets fall on tech selloff

Read our full Market Update Week 36 Market Update US Tech stocks saw their momentum reversed on Thursday, dragging other sectors and regions into negative territory for the week. Apple, Amazon, Alphabet (Google), Microsoft and Facebook all fell between -4% and -8% on Thursday, with US equities as a whole down -3.5% on the day. […]

Weekly Market Update: Flexible Federal Reserve Sends Cable and Yields Higher

Read our full Market Update Market Update US equities climbed +1.4% last week with, major indices setting new record highs, as US Federal Reserve Chairman Jerome Powell announced a shift in how the Fed views inflation, saying it won’t increase interest rates to respond to low unemployment levels and also won’t worry as much about […]

Weekly Market Update: Increasing COVID-19 case count caps equity market rally

Read our full Market Update Market Update Global equities traded higher last week, up +0.5% in Sterling terms. US equities climbed +0.9% with housebuilders, buoyed by promising housing data, leading the way. Other developed markets did not fare as well. UK and European stocks were down -1.3% and -1.1% respectively, driven by both the negative […]

Weekly Market Update: Global stocks continue their ascent, sovereign bonds sell-off

Read our full Market Update Market Update All major developed market equity indices posted positive returns last week, while Emerging Market stocks closed marginally down. Global equities gained +0.8% in Sterling terms and the S&P 500 traded +0.2% higher, with the index just below its February peak. Japanese stocks rallied +4.0% in Sterling terms, partly […]

Weekly Market Update: Equity Markets Rebound, Gold continues to soar

Read our Full Market Update Market Update Bucking the trend of two consecutive weeks of falling equity markets, all major indices were positive last week. Global equities gained +2.7% in Sterling terms, with the Nasdaq Composite reaching new highs, and the S&P 500 now close to its February peak. After a poor week last week, […]

Weekly Market Update: Markets fall after record low US GDP data

Read our full Market Update Week 31 Market Update Major indices closed down for a second week running, with investors reacting to a flood of quarterly earnings reports and some prominent economic data. US corporate earnings were in the spotlight during the week, with tech giants Facebook, Amazon, Apple, and Alphabet reporting mostly healthy gains […]

WEEKLY MARKET UPDATE: MARKETS SLIDE ON US-CHINA CONSULATE CLOSINGS

MARKET UPDATED Despite recent strength, equities closed lower last week as tensions between the US and China were ratcheted up, with the forced closure of the Chinese consulate in Houston and the arrest by the US of a Singapore national who has admitted spying for China. In response China has ordered the US consulate in […]

Weekly Market Update: Stock markets post mixed returns on virus fears

Please read our full Market Update Market Update Stocks posted mixed returns last week, with strong performance in the US as the NASDAQ 100 set new record highs, while UK and Japanese stocks closed down -0.9% and -1.8% in Sterling terms respectively. Emerging Market stocks performed well, gaining +2.4% for the week. Technology, Telecoms and […]

Weekly Market Update: Technology stocks push equity markets higher

Please read our full Market Update Market Update Stock markets closed up last week, with the technology-heavy NASDAQ 100 even reaching an all-time high. Cyclical sectors such as Oil and Financials lagged as economic conditions remain weak and second wave fears continue to build, with increased use of local lockdowns. The rally in risk assets […]

Weekly Market Update: Stocks sell-off on COVID-19 second wave fears

Read our full Market Update Market Update Stock markets closed down last week on the back of a COVID-19 case count resurgence. Growth stocks outperformed value stocks as fears of a second wave of the virus caused market participants to raise their expectations of a second lockdown. Banking stocks were particularly volatile as news that […]

Weekly Market Update: Stocks climb on promising economic data

Read our full Market Update Market Update Stock markets rebounded last week, posting gains in both local currency and Sterling terms, with news that the Fed will be expanding its corporate bond buying programme sending stocks higher. The move from ETF purchases to individual bond issues by the Fed has been viewed as a significant […]

WEEKLY MARKET UPDATE: Markets fall on second wave fears, gloomy Fed

Read our full Market Update Market Update The rally in risk assets came to a grinding halt last week on fears of a second wave of infections in the US, with virus rates up in many states, and the Federal Reserve offering up a gloomy economic outlook. Stocks are also down this morning on news […]

WEEKLY MARKET UPDATE: UPBEAT US JOBS FIGURES BOOST EQUITIES

Equities saw a third straight week of strong returns, with Japan the only region experiencing losses in Sterling terms (down -1.6%), although it was also positive in local terms (up +3.1%). US ADP National Employment figures showed fewer job losses, causing an initial spike in equities, which continued later in the week as it was […]

Weekly Market Update: Equity Momentum Continues

For a second week in a row it was green across the board for equities, as global stocks gained +2.4% in Sterling terms and +3.7% in local terms. European stocks were amongst the best performers for a second week, with Japanese equities performing equally well. Early in the week markets focused on the US returning […]

WEEKLY MARKET UPDATE: EQUITY STRENGTH DESPITE WEAK DATA

Hopes for a COVID-19 vaccine saw equity markets rally across the board last week, with global stocks up +2.8% in Sterling terms and +3.2% in local terms. EU equities led the way in Sterling terms, up +4.1%, with UK equities also experiencing strong returns of +3.4%. US equities gained +2.8%, although Emerging Market equities were […]

WEEKLY MARKET UPDATE: SECOND WAVE FEARS SEE MARKET JITTERS

Equity markets sold off across the board last week, declining initially amid fears of a secondary wave of infections and a pessimistic outlook from the Fed, although there was a sharp recovery later in the week on additional stimulus expectations. In local terms global equities fell -2.5%. However due to Sterling weakness, in part due […]

WEEKLY MARKET UPDATE: EASING OF LOCKDOWN RESTRICTIONS BOOSTS EQUITIES

Equity markets continued to steadily recover last week, with all regions positive or flat in Sterling terms and only Emerging Market Equities down in local terms. Markets have been reacting positively to the gradual opening up of economies across the world, even with some signs that the Coronavirus is re-emerging in areas such as Wuhan […]

WEEKLY MARKET UPDATE: US-CHINA RHETORIC UNNERVES MARKETS

Markets rallied throughout last week, however US equities closed lower on Friday and down -1.6% in Sterling terms for the week, with other regions following suit this morning, on concerns that tensions between the US and China could escalate due to accusations from the US administration over the origins of the Coronavirus. For the week, […]

WEEKLY MARKET UPDATE: VALUATIONS REMAIN HIGH

After several weeks of recovery, equities fell in all major regions last week. Due to weak Sterling, both US and Japanese equities were flat for UK investors. However European (-0.5%), UK (-0.5%) and Emerging Market (-1.1%) equities were all negative in Sterling terms. The Energy sector was the best performing globally, even though the outlook […]

Weekly Market Update: Nobody Wants Your Oil

Aside from UK equities, major equity market regions were positive in local currencies, boosted on Friday by reports that suggested a drug had shown positive results against COVID-19 in a clinical trial, as well as some relaxing, both planned and enacted, of restrictions in several countries. Sterling strength meant that some returns for UK investors […]

WEEKLY MARKET UPDATE: IS THIS RALLY A “HEAD FAKE”?

Last week (Friday 3 to Monday 13 April) global stocks rose on the back of an improved narrative regarding the Coronavirus pandemic, as markets see a ‘flattening of the curves’ and a reduced pace of new infections, while many countries weigh reopening their economies. Boris Johnson’s survival helped improve the narrative both for the UK […]

WEEKLY MARKET UPDATE: A MORE SANGUINE WEEK FOR MARKETS

By regular standards it was a rocky week for equities, which rallied 2-3% in the first few days, but fell 4-5% later on. However in comparison to preceding weeks market moves were somewhat muted, perhaps because the news-flow has provided little further clarity as to the time-scale and magnitude of the COVID-19 crisis – markets […]

Weekly Market Update: Fiscal stimulus plans revive global equities, bond yields fall on additional QE measures

Read our full Market Update Stock markets ended their losing streak with many major indices posting their largest daily gains since 1933, or indeed for many on record, on the Tuesday of last week. Reasons for the rally include investors rebalancing multi-asset portfolios, short positions being covered and the US fiscal strategy offering downside protection […]

Weekly Market Update: Monetary Policy Struggles to Support Markets

Read Our Full Market Update Market Update The market sell-off continued last week, despite government pledges of further fiscal support and central bank liquidity injections, as countries moved into lockdown and tightened border controls to contain the coronavirus outbreak. UK equities were down -3.2% with Housebuilders, Industrials and Energy companies experiencing the brunt of the […]

Weekly Market Update: Stock markets suffer record daily falls, central banks cut interest rates to combat coronavirus induced slowdown

Read our full Market Update Week 11 Market Update UK equities were down over 8% this morning, with the FTSE 100 down -32% over the last month as markets are now starting to price in a coronavirus induced global recession. Oil prices continued to slip, down nearly 50% YTD in USD terms. This fall has […]

Stocks fall across the globe as COVID-19 cases climb, Oil prices drop as Russia refuses supply cuts

Please check out our full Market Update Week 10 Market Update UK equities were down nearly 9% this morning, with the natural resource and banking heavy indices experiencing weakness for three prime reasons. First, coronavirus fears continued to rise as Italy quarantined 16 million residents, with investors fearful of this impact on the global economy […]

US 10 Year Yield at all time low in response to Coronavirus fears

Download our Full Market Update here Market Update Global stocks saw a sharp sell-off last week after COVID-19 cases spiked in Italy, Iran and South Korea, pushing recession fears higher and expected corporate earnings lower for 2020. Global stocks fell -9.4% in Sterling terms, with US equities experiencing the quickest correction since the Great Depression, […]

Weekly Market Update: Stocks decline on COVID-19 fears, Bonds and Gold rally

Read our full Market Update Week 8 Market Update Fears that COVID-19 could weigh on consumption and global growth increased last week as the number of cases spiked in both Iran and Italy. Concerns that the virus could impact critical global supply chains have increased, with tech titan Apple widening their earnings estimates given the […]

Weekly Market Update: Stocks Steady on US Earnings Growth

Market Update Despite concerns about coronavirus continuing to dominate headlines, markets on the whole edged up last week, with global equities gaining +1.2% in local terms, which translated into a +0.1% gain for UK investors. The resignation of UK Chancellor Sajid Javid saw Sterling rise along with gilt yields. Javid’s replacement, Rishi Sunak, is expected […]

Weekly Market Update: Stocks hit record highs on earnings data, bond yields rise

Read our full Market Update Week 6 Market Update Global stocks saw strong gains last week, returning +2.7% in local currency terms and +5.0% in Sterling terms after the Pound depreciated versus most major currencies. The rally was driven by hopes that coronavirus fears had been overstated and US earnings coming in ahead of expectations. […]

Weekly Market Update: Global stocks continue their decline on coronavirus fears

Read our full Market Update Week 5 Market Update Coronavirus fears saw markets sell-off across the board last week, with global equites returning -3.1% in Sterling terms. More cyclical sectors such as energy and materials were worst hit, while stocks such as utilities and consumer staples which can behave like bond proxies were largely flat. […]

Weekly Market Update: Oil and stocks sell-off on coronavirus fears

Read our full Market Update Week 4 Market Update Equities closed the week lower as an outbreak of the coronavirus in China made global headlines. Global stocks fell -0.8% in local terms, which translated into -1.2% in Sterling terms. UK markets fell -1.2% with Financials and Energy the worst performers. Oil has been particularly affected […]

Weekly Market Update: Global stocks rally on US & China “phase 1 deal”, Sterling declines as muted inflation increases rate cut probability

Read our full Market Update Market Update Risk assets gained last week on the signing of the ‘phase 1’ trade deal between the US and China. Global stocks were up +1.9% in Sterling terms and +1.6% in local terms, reaching greater all-time highs. Returns for Sterling investors were pushed higher as the Pound fell on […]

Weekly Market Update: Markets Rattled by Iran Tensions

Read our full Market Update Market Update U.S. stocks declined modestly last week, after a sharp rally at year-end and a new record high on the first trading day of the year, as tensions rose between the US and Iran following an airstrike in Iraq that killed a prominent Iranian general. US equities were down […]

Weekly Market Update: Global stocks continue their climb, Sterling declines

Read our full Market Update Market Update Global stocks posted strong gains last week, up +1.3% in local currency terms and +3.7% in Sterling terms after the Pound depreciated versus other major currencies. Sterling fell shortly after the UK general election when Boris Johnson signalled the UK will leave the EU with or without a […]

Weekly Market Update: Sterling rallies on UK general election result

Read our full Market Update Market Update Sterling rallied last week after the Conservative Party won 365 seats in the UK general election, securing a majority of over 80. The Pound was up +1.5% vs the US Dollar and +0.9% vs the Euro, with the result being that although global stocks were up in local […]

Weekly Market Update: Stocks trade higher on US jobs numbers, Sterling gains versus Dollar and Euro

Read our full Market Update Market Update A second straight week of strong performance for Sterling, up +1.7% vs the US Dollar and +1.2% vs the Euro as markets further priced in a Conservative victory at the coming General Election, once again mean that although global stocks were up in local terms, UK investors experienced […]

Weekly Market Update: Stock gains muted despite signs of a trade deal

Global equities were positive last week, however energy stocks fell precipitously on plummeting oil prices, so that overall in local terms returns were +0.8%. Positive sentiment was boosted as the off-again, on-again negotiations between the US and China appear to be on-again, while a revised estimate of Q3 GDP showed the US economy expanded at […]

Weekly Market Update: Sterling depreciation buoys Global Equities, bond yields fall

Global stocks were down -0.4% in local currency terms last week, however returns for UK investors were +0.3% after Sterling depreciated versus major global currencies, down -0.5% and -0.3% versus the US Dollar and the Euro respectively. US, UK and European stocks returned +0.3%, +0.4% and -0.3% over the week, whilst Emerging Markets equities posted […]

Weekly Market Update: Global Equities Rise, but Sterling Rallies More

Market Update Global stocks rose +0.7% in local currency terms, which translated into a -0.4% fall in Sterling terms. Returns were mixed in local terms, however were universally down in Sterling term as the currency rose +1.0% vs the US Dollar to just short of the $1.30 mark. Emerging Markets had a challenging week falling […]

Weekly Market Update: Bond yields rise, gold price declines

Read our full Market Update Week 45 Market Update Global stocks rose +0.8% in local currency terms and +2.1% in Sterling terms in yet another positive week for risk assets. Meanwhile yields rose sharply and Gold had its worst week in three years as there was a flight from defensive assets. In Sterling terms US […]

Weekly Market Update: Fed cuts rates, Sterling rises on news of a general election

Read our full Market Update Week 44 Market Update Global stocks rose +1.3% in local currency terms and +0.4% in Sterling terms in a positive week for risk assets. Sterling rose against major currencies, up +0.9% against the US Dollar and +0.1% against the Euro, against a backdrop of polls suggesting the Conservative Party hold […]

Weekly Market Update: Stocks gain globally, Sterling back below 1.30 vs Dollar

Read our full Market Update Week 43 Market Update Global stocks were up in both local currency and Sterling terms last week, however due to a fall in the currency versus other major currencies, Sterling-based investors enjoyed a greater gain; global equities were up +2.1% in Sterling terms and +1.3% in local terms. US stocks […]

Weekly Market Update: Sterling rallies on potential Brexit deal

Read our full Market Update Week 42 Market Update Global stocks gained during the week in local terms, however they fell in Sterling terms after the Pound rallied versus major currencies as the UK and EU agreed a Brexit deal; one not dissimilar to Theresa May’s. However, this deal still needs to be approved by […]

Weekly Market Update: Bond yields rise, Pound rallies on potential Brexit “pathway”

Read our full Market Update Week 40 Global stocks gained throughout the week in local terms, however they fell in Sterling terms after the Pound rallied on news of a potential “pathway” to a Brexit deal. Global stocks fell -1.5% in Sterling terms, with the decline led by weak performance from US and Japanese equities; […]

Weekly Market Update: Global stocks fall as economic data disappoints

Read our full Market Update Week 40 Global stock markets fell throughout the week, both in local currency terms and Sterling terms. UK assets led the decline, down -3.5% on the news of weaker economic data out from the services industry. US stocks were down up -0.4% in Sterling terms, with similar returns observed in local […]

Weekly Market Update: Weak Week for Sterling

Market Update Major developed market equities gained in Sterling terms this week, due in large part to currency effects. Many of these indices actually fell in local currency. UK equities grew by +1.1% led by utilities and healthcare sectors. US stocks were up +0.4% in Sterling terms but had fallen -1.0% in local currency, this […]

Weekly Market Update: Worrying signs for German manufacturing

In a sluggish week for equities, equities fell in both local and Sterling terms. US, Emerging Markets and European stocks each fell -0.6% in Sterling terms, however European stocks were up marginally +0.1% in local terms. Japanese stocks rose slightly, by +0.5% in Sterling terms, while UK stocks fell -0.3%. Over the week Sterling fell […]

Weekly Market Update: Global stocks gain in local currency terms, Oil rallies on drone attack

Read our full Market Update Week 37 Market Update Global stocks were down -0.2% last week in Sterling terms and up +1.3% in local currency terms as Sterling appreciated versus other major currencies as Boris Johnson adopted a softer stance on the Irish border; increasing the likelihood of a deal being reached before the October […]

Weekly Market Update: Global markets rally amid Brexit uncertainty

Read our full Market Update Week 36 Market Update Global stocks were up last week, gaining +1.9% in local terms and +0.9% in Sterling terms as the Pound appreciated after the House of Lords passed a bill giving parliament the power to, in theory, prevent a no-deal Brexit. In addition to this, the Prime Minister […]

Weekly Market Update: Sterling depreciates as no-deal probability increases

Read our full Market Update Week 35 Market Analysis There were gains across the board last week, as China indicated it had no immediate plans to retaliate to the latest round of US tariffs. In Sterling terms, global equities were up +3.0%, led by US equities which were up +3.7%, as trade-sensitive technology and industrial […]

Weekly Market Update: Global equities decline as trade war escalates

Read our Full Market Update Week 34 Market Analysis Last week equities continued to decline, both in local and Sterling terms. Emerging Markets led the decline, falling -1.5% in Sterling terms. US, UK and Japanese stocks fell -0.9%, -0.2% and -0.9% respectively. European stocks were flat in Sterling terms. Globally, the best performing sectors were […]

Weekly Market Update: Yield curve inversion spooks markets

Read our full Market Update Week 33 Market Analysis Last week saw equities decline globally, both in local and Sterling terms. US stocks recorded a third straight week of losses as trade and growth worries unsettled investors, down -1.6% in Sterling. The typically defensive consumer staples and utilities sectors performed best within the S&P 500 […]

Weekly Market Update: Stocks sink as the Fed disappoints traders

Market Analysis This week saw stocks suffer globally, with global stocks down -1.1% in Sterling terms. US equities suffered their worst week thus far in 2019 as market sentiment was dealt twin blows by disappointing signals from the Fed and the announcement of new tariffs on imports from china. US equities were down -1.2% for […]

Weekly Market Update: Global equities rally, Sterling depreciates as likelihood of a no-deal increases

Market Analysis This week saw strong equity market returns, with global stocks up +2.0% in Sterling terms. US equities were up +2.6% for the week, with returns enhanced by Sterling depreciation versus the US Dollar and earnings outperformance from both Google and Starbucks. UK, European and Japanese equities were up +0.6%, +1.1%, and +0.5% respectively. […]

Weekly Market Update: Sterling continues to depreciate, global yields

Market Update This week saw mixed equity returns, with global stocks down -0.3% in Sterling terms. Emerging Markets posted a strong gain of +1.3%, which was supported by the Sterling depreciation observed across the period, while US stocks were down -0.7% for the week. Japanese equities fell -0.8% in local currency, however, the GBP/JPY rate […]

Weekly Market Update: S&P 500 hits all-time high, Chinese economic growth slows to multi-decade lows

Read our full Market Update Week 28 Market Update Despite a mixed week for equities, the S&P 500 set new records on Friday, closing above 3,000 for the first time at 3,013.77. US equities gained +0.4% in Sterling terms, with all other major regions down. Emerging Market equities fell the most, down -1.2%, European equities […]

Weekly Market Update: Global equities rally amid strong economic data

Read our full Market Update Week 27 Market Update US equities hit record highs last week as data on Wednesday showed the US trade deficit rose to a five-month high while services sector data showed a slowdown in activity, increasing hopes that the Fed would turn more dovish. These hopes were curtailed on Friday as nonfarm […]

Global stocks continue their decline as trade tensions escalate

Market Update Last week was torrid for stock markets as the US-China trade war continued to dominate markets. Over the weekend, China released a report on the state of US trade talks criticising the US for “exorbitant demands” and for “resorting to intimidation and coercion”. The result, again, was US equities led global equities lower, […]

US stocks hit all-time highs, yields continue to fall

Oil volatile on tanker blasts, Sterling declines on Johnson’s race to PM

Market Update Equities finished the week strongly last week after selling off in the first few days. All regions were up slightly in local terms, however non-UK regions saw stronger returns in Sterling terms as the increasing likelihood of Boris Johnson winning the Conservative leadership election, and thus a hard Brexit, saw weakness in the […]

Markets rebound amid mixed economic data

Market Update Equity markets rebounded last week as a combination of hopes of a delay to US tariffs on Mexico, and increased expectations for interest rate cuts in the US, saw positive performance every day from Wednesday onwards. Weak nonfarm payrolls on Friday of just 75,000, below expectations of 185,000, offered further evidence to those […]

Global stocks down on trade disputes

Market Update Global equity markets saw a rebound last week, with the exception of Emerging Market equities which were down -1.3% in Sterling terms, as the US-China tariff fight appeared to escalate. European equities saw the strongest gains, up +3.2%, with Japanese and UK equities up +2.4% and +2.3% respectively. US equity returns were relatively […]

Global stocks slide, Sterling falls on May’s resignation plans

Market Update Last week reports about trade wars oscillated between good news and bad, with tech stocks rallying on news of the US easing curbs on China’s Huawei Technologies, only to reverse as it emerged that the US is considering sanctions on other China tech firms. These events overshadowed the release of FOMC minutes which […]

Both yields and equities fall as US-China trade war escalates

Market Update With slow progress in US-China trade talks prompting the US President to confirm a hike in tariffs on a further $300bln of Chinese goods to 25%, it was no surprise that equity markets suffered last week. All regions were down, although as often happens when concerns rise about trade, Emerging Market equities bore […]

Weekly Market Update: US equities reach all-time highs, Global yields fall

Read our full Market Update Week 17 Market Update Last week saw diverging performance in global markets as US equities delivered +1.6% in Sterling terms, however Emerging Market, UK and European equities returned -0.8%, -0.3% and +0.1% respectively. Robust earnings from tech giants and a stronger than expected Q1 annualised growth figure of 3.2% meant […]

Weekly Market Update: Equities continue to climb, Pound gains vs Dollar and Yen

Read our full Market Update Week 15 Market Update Global equity markets were mixed last week following a period of strong returns. In Sterling terms global equities were down -0.1%, although in local terms were up +0.5%. In Sterling terms European equities were the only positive region, up +0.2%. US and UK equities were both […]

Weekly Market Update: Oil trades higher on low supply and continued sanctions, global equities post gains

Read our full Market Update Week 14 Market Update Global equity markets saw a second consecutive week of positive performance, with US equities moving within 2% of their highs. Markets have ben in a positive mood since the Fed became more dovish early in the year, with positive signs on trade talks between the US and […]

Weekly Market Update: Global stocks rally, UK house prices decline

Read our full Market Update Week 13 Market Update Global equity markets rallied last week, continuing the pattern of rising after a poor week. US equities lead the way, up +2.9% in Sterling terms, with European equities also performing well, up +2.1%. Emerging Market equities gained +1.5%, UK equities +1.1% and Japanese equities +0.4%. Sterling fell […]

Weekly Market Update: Markets mixed as yields curve inverts

Read our full Market Update Week 12 Market Update Global financial markets are starting to hint at an impending recession, with Japanese equities down over 3% in Monday’s trading, with other Asian stock markets also down markedly. Further, the US yield curve has inverted and last week 10Y Bund yields fell back into negative territory, although […]

Weekly Market Update: Global stocks rally while Brexit outcome remains uncertain

Read our full Market Update Week 11 Global equity markets rallied last week, with Sterling returns positive in all major regions aside from Japan which was down -0.6%, although equities there did gain +1.9% in local terms. UK equities lead the way, gaining 1.8%, with European equities also up +1.4%, both buoyed by Parliament’s vote against […]

Weekly Market Update: Equities fall on signs of global slowdown

Read our full Market Update Week 10 Market Update Sterling reversed the previous week’s gains, falling -1.4% vs the US Dollar and -0.3% vs the Euro, with few signs that negotiations between the EU and the UK are likely to yield an agreement on the future of the Irish border. There was also weak performance in […]

Weekly Market Update: Sterling rallies on hopes that Hard Brexit is unlikely

Read our full Market Update Week 9 Market Update Strong Sterling performance saw large-cap UK equities retreat last week, down -0.8%. Markets are growing more confident that either Theresa May’s deal will pass Parliament or that the date for leaving the EU will be delayed in order to avoid a ‘Hard Brexit’, which has fed […]

Weekly Market Update: Pound rallies and UK wages continue to grow

Read our full Market Update Week 8 Market Update Equities were on the whole positive in local terms last week, however strong Sterling performance meant that performance for non-UK stocks was mixed for UK investors. The Pound rallied 1.3% vs the US Dollar and 0.9% vs the Euro on a steady flow of news suggesting that […]

Weekly Market Update: Oil rallies and UK stocks trade higher on retail sales numbers

Read our full Market Update Week 7 Market Update It was an excellent week for equity investors, with most major indices posting gains. US stocks closed the week up +3.0% in Sterling terms, despite poor retail sales figures. The impressive returns were evenly spread, with UK, European and Japanese equities returning +2.6%, +3.3% and +2.2% respectively. […]

Weekly Market Update: BoE keeps rates on hold

Read our full Market Update Week 6 Market Update It was a mixed week for equities, with US stocks ending the week up +1.3%, despite President Trump ruling out a meeting with President Xi before March 1 to strike a trade deal and put trade concerns to rest. It was also a positive week for UK […]

Weekly Market Update: Stocks rally on dovish Fed

Read our full Market Update Week 5 Market Update Last week was a great week for markets with both real and financial assets posting positive returns. Equities were up in Sterling terms with UK stocks, the best performers of the week up +3.1%. Global stocks returned +2.1% and US stocks returned +2.3%; the S&P 500 is […]

Weekly Market Update: US government reopens for now

Read our full Market Update Week 4 Market Update Equities were mostly up in local terms, however down in Sterling which again rallied on expectations for a delayed or soft Brexit. The Pound was up +2.6% vs the US Dollar, +2.2% vs the Euro and +2.4% vs the Yen. In Sterling terms global equities were […]

Weekly Market Update: Sterling jumps as Parliament rejects May’s Brexit deal

Read our full Market Update Week 3 Market Update Equities continued the recovery seen in the new year, with Friday seeing a broad-based rally after the Wall Street Journal reported that the US was considering lifting tariffs on China. In Sterling terms global equities were up +2.0%, with US equities gaining +2.7%. Emerging Market equities […]

Weekly Market Update: Stocks rally and Sterling higher ahead of Brexit vote

Read our full Market Update Week 2 Market Update Stock markets rebounded having moved into oversold territory on a technical basis and early US earnings figures beating expectations. Meanwhile a strong US December jobs report showed that wages for production and nonsupervisory workers increased by 3.3% year-on-year and consumer prices grew at just 1.9%. Inflation has […]

Weekly Market Update: Fed’s ‘patient’ comment boosts markets in the new year

Read our full Market Update Week 1 Market Update Stock markets carried over into the New Year the volatile behaviour seen towards the end of 2018, as economic news continued to point to a slowing global economy. Figures showed that China’s manufacturing sector contracted for the first time in 19 months in December, while Apple issued […]

Weekly Market Update: China concerns see market volatility

Read our full Market Update Week 50 Market Update Last week the main driver for UK investor returns was the weakness in Sterling, which fell -1.1% vs USD and -0.5% vs EUR. The majority of the drop came on Friday as Theresa May’s inability to win concessions from the EU created further uncertainty about the future […]

Weekly Market Update: Equities sell off on renewed trade war fears

Read our full Market Update Week 49 Market Update US equities sold off significantly last week, down -4.4% in Sterling terms, as trade war concerns weighed on American stocks, erasing the gains made in the previous week. Global equities were down -3.5% in Sterling terms, with all sectors apart from utilities experiencing negative returns. Emerging Market […]

Weekly Market Update: Global stocks rally with US stocks higher after Fed’s comments

Read our full Market Update Week 48 Market Update Last week US equities had already seen a solid rebound, up over 2% for the week in US Dollar terms, when on Wednesday Jerome Powell’s apparent U-turn on interest rates, stating that “they remain just below the broad range of estimates of the level that would […]

Weekly Market Update: Oil prices fall and Tech leads US equities lower

Read our full Market Update Week 47 Market Update Equities fell across the globe last week, with the US suffering the largest decline as technology mega-caps sold off. Facebook is down over 25% year-to-date, suffering from both idiosyncratic factors, such as an ageing user base and political scandals, and sector specific issues such as regulation. Emerging […]

Weekly Market Update: Global stocks continue their rebound while Oil prices drop further and Brexit uncertainty heightens

Read our full Market Update Week 46 Market Update Global stocks continued their rebound this week, with both Global and European equities up +0.3%. Emerging Market equities led the pack, returning +2.5% as the slide in oil prices gave a boost to emerging market currencies. UK Stocks were hit by further Brexit volatility, hardest hit stocks […]

Weekly Market Update: US Equities continue their rebound, oil enters bear market and Democrats win the House

Read our full Market Update Week 45 Market Update US stocks continued their rebound this week, with energy and financials sectors up +1.4% and +1.5%, while the tech sector suffered as Amazon and Apple saw big falls. General Electric also fell to it lowest level since the GFC. Emerging Market equities were down -2.4% in Sterling […]

Weekly Market Update: Equities rally ahead of US midterms

Read our full Market Update Week 44 Market Update Global stocks rebounded this week, with Emerging Market equites soaring over 5% in GBP terms. The S&P 500 was up 1.9% and Japanese equities saw a healthy rebound returning 3.4%. US 10-year Treasury yields rose to 3.22%, but didn’t break through 3.25%, a resistance level investors are […]

Weekly Market Update: Global stocks down for the week, capital flows to US bonds, UK budget contingent on Brexit

Read our full Market Upate Week 43 Market Update Global stocks continued to slide this week, with US stocks leading indices lower, the S&P 500 falling -2.2% in Sterling terms. The NASDAQ lost -3% due to disappointing results from Tech companies and a drop in the Consumer Discretionary sector following a disappointing sales outlook from […]

Weekly Market Update: Global equities rebound, US treasury yields pick up, Italy still turbulent

Read our full Market Update Week 42 Market Update US indices rebounded this week, leading the pack with a +1.3% gain after the significant correction that investors have seen in recent weeks. US stocks are climbing as tax cuts have lead to significant EPS growth and many companies, including financials, have beaten earnings estimates. The US […]

Weekly Market Update: Stocks sell off globally on rising bond yields

Read our full Market Update Week 41 Market Update Global indices suffered significant falls last week, down -4.1% in local terms and -4.5% in Sterling terms. US equities led the weak performance, experiencing their biggest losses in 8 months on Wednesday. Technology stocks were particularly affected as market participants reacted badly to rising bond yields. […]

Weekly Market Update: US treasury yields hit 7-year highs; European risk renewed

Read our full Market Update Week 40 Market Update US indices ended the week lower, with S&P 500 holding up more compared to the technology rich Nasdaq, as giants such as Amazon slipped. Financials stocks performed well given rising yields. The US 10-year Treasury yield closed the week at 3.23%, a 7-year high. UK stocks […]

Weekly Market Update: Fed hikes rates as oil hits year highs

Read our Full Market Update Week 39 Market Update US stocks dropped -0.2% in Sterling terms last week, as the Federal Reserve raised interest rates by 0.25%, with investors concerned about the elimination of the word “accommodative” from the Fed’s policy statement. UK stocks were up +0.3% and UK 10 Year Gilts were up +2.0 […]

Weekly Markets Update: US Equities reach highs; May’s Chequers plans ambushed

Read our full Market Update Week 38 Market Update UK stocks traded higher with the FTSE 100 edging closer to the 7500 level, closing at 7472 point, up +2.65% for the week. In the US the S&P 500 reached new highs, returning +0.8% in GBP terms. Global stocks were up +1.5% in local terms and +1.6% […]

Weekly Market Update: Bank of England and ECB keep rates unchanged

Read our full Market Update Week 37 Market Update Equities rose across the board last week, both in local and Sterling terms. UK stocks gained +0.4% with US and Global stocks up +0.1% and +0.3% in GBP terms. Other areas fared even better, as European and Japanese equities rose +0.8% and +0.6% respectively. However, Emerging […]

Weekly Market Update: Markets correct on NAFTA and Tech concerns

Read our full Market Update Week 36 Market Update Equities saw sizeable falls across the board last week, both in local and Sterling terms. UK stocks fell -2.0% with US and Global stocks down -0.7% and -1.5% in GBP. Other areas fared even worse, as European, Japanese and EM equities lost -2.3%, -2.6% and -2.8% […]

Weekly update: Sterling Strength and Fresh US Highs

Read our full Market Update Week 35 It was a good week for most global stocks, except for the UK, where a rebound in Pound Sterling (up 0.9% vs the Dollar and 1% vs the Euro) following the extension of an olive branch by the EU caused British equities to underperform, in a relationship which […]

Weekly Market Update: Markets rally, Tesla delisting cancelled

Read our full Market Update Week 34 Market Update Last week and Monday was a positive period for risk assets, with global stocks returning +0.7%. EM equities gained the most, up +3.2% in Sterling terms and 4.6% in local terms, buoyed by Donald Trump’s announcement that he is prepared to resume talks with China (although […]

Weekly Market Update: US sanctions further Turkish instability

Read our full Market Update Week 32 Market Update As the pound continued its decline into last week, in local terms equity markets fell across the board aside from UK equities which made a +0.6% return. In Sterling all markets were up bar European equities, with US and global equities gaining the most with +1.9% […]

Weekly Market Update: BoE raises rates to highest level since 2009

Read our full Market Update Week 31 Market Update In local terms, equity markets fell across the board, aside from US equities which made a +0.8% return in USD (+1.5% in GBP). Global equities were flat in local terms but up +0.7% in Sterling as the Pound hit its lowest level since last September amid […]

Weekly Market Update: Equities rally despite no one liking Facebook’s outlook

Read our full Market Update Week 30 Market Update Japanese and Emerging Market equities lead markets higher last week, gaining +2.6% and +2.2% respectively in Sterling terms. These regions had their best week in more than two months, as China’s stimulus measures buoyed the region. News of an agreement reached between President of the European Commission […]

Weekly Market Update: Trump questions Fed policy

Read our full Market Update Week 29 Market Update Sterling took another hit last week as lack of government unity surrounding Brexit saw the currency fall -0.7% vs USD, -1.1% vs EUR and -1.5% vs JPY. These moves increased returns on overseas equities for UK investors, with Japanese equities leading the way with +2.3% and […]

Weekly Market Update: Global stocks up heading into earnings season

Read our full Market Update Week 28 Market Update Global markets were up last week by +1.4%, despite a mid-week blip as once again Donald Trump increased the stakes against China, threatening tariffs on $200bn worth of exports. US stocks were up +1.9% in Sterling terms, however Emerging Market equities gained the most, up +2.0%. […]

Weekly Market Update: Oil spikes as US inflation hits Fed target

Read our full Market Update Week 26 Market Update Global equities saw a second straight week of negative performance, down -0.7% in Sterling terms, with all major indices experiencing falls in both local and GBP terms. Once again escalating trade tensions were the prime reason for weak performance, although for the second week running UK stocks […]

Weekly Market Update: BoE’s Chief Economist dissents to put 2018 rate hike on table

Read our full Market Update Week 25 Market Update Global stocks turned negative last week following two weeks of positive performance. Emerging Market equities were the worst hit, falling -2.0% in Sterling terms, as rising trade war fears also weighed on global equities, which were down -0.7%. Japan was also badly hit due to its […]

Weekly Market Update: Global central banks turning hawkish?

Read our full Market Update Week 24 Market Update Global markets had a second straight week of gains in Sterling terms, again led by US equities (+1.0%, +0.1% in local), with European equities also faring well (+1.0%, +1.5% in local). Japanese equities also gained +0.4%, however UK equities and Emerging Market equities were down -0.6% […]

Weekly Market Update: Markets shrug off US G7 communique snub

Read our full Market Update Week 23 Market Update Last week markets were back in risk-on mode, as Global equities gained +0.9% in Sterling terms, led by US stocks which were up +1.2%. The gains were fairly evenly dispersed amongst sectors, although Utilities were the main loser as Treasury yields crept higher. Japanese equities were […]

Weekly Market Update: Italian populist government calms markets, US populist tariffs re-ignite concerns

Read our full Market Update Week 22 Market Update Markets sold off and yields rose in the first half of the week on fears about repercussions of the Italian President rejecting the populist coalition’s choice of finance minister and attempting to install a technocrat government. There were concerns that a new set of elections would […]

Weekly Market Update: Italian risks rising

Read our full Market Update Week 21 Market Update Global equity markets were mixed last week, down in local terms -0.4%, although up in Sterling terms +0.8% due to the Pound falling as UK inflation data fell to a 13-month low, denting the chances of a rate hike in the near term. Equities in general […]

Weekly Market Update: UK equities benefit from Oil rally

Read our full Market Update Week 19 Market Update Last week saw equity markets retreat in local terms, offsetting the previous week’s gains. Emerging markets sold off the most, falling -2.3% in local terms (-1.8% in GBP) weighed down by a stronger US Dollar and rising US Treasury yields. EM were followed by US equities […]

Weekly Market Update: Markets unfazed by US withdrawal from Iran Deal

Read our full Market Update Week 18 Market Update Last week saw equity markets across the board in positive territory in both local and GBP terms. Emerging markets lead the way with a +2.5% gain (+2.4% in local), followed by both US (+2.5% in Dollars) and UK large caps at +2.4% in Sterling. Japanese and […]

Mazars Weekly Market Update: Weak UK growth sees Sterling sell-off

Read our full Market Update Week 17 Market Update Global equity markets were flat to positive in local terms last week, however a large sell-off in Sterling due to fading expectations for a rate hike at the next MPC meeting in May meant that returns were positive for UK investors. Global equities returned 1.6%, US […]

Mazars Weekly Market Update: Apple sours market recovery

Read our full Market Update Week 16 Market Update Equity markets saw another week of recovery with positive returns across all regions. Returns for UK investors were boosted by a weak return from Sterling, which sold off 1.75% on a trade weighted basis as Mark Carney, the Governor of the Bank of England, made comments […]

Macro of the Week – UK GDP sees marginal improvement

The NIESR GDP growth estimate for the 3 months to March was revised up to 0.2% from 0.1% in February, having been revised down from 0.3%. However the figure is still a reduction from the 0.4% growth seen in Q4 2017. Quarterly growth of 0.2% equates to just 0.8% annual growth. According to Amit Kara, […]

Weekly Market Overview – Markets shrug off US strikes on Syria

Markets were volatile last week due to the possibility of air strikes on Syria, however opened slightly up on Monday morning after the US took action over the weekend. Equity markets were positive across the board in local terms last week, however Emerging Market and Japanese equities posted losses in GBP terms as the Pound […]

Macro of the Week – John Williams takes over NY Fed

In a move that was expected, John Williams will move from the San Francisco Fed president post to take the same position at the New York Fed. He takes over from William Dudley, who late last year announced he would be leaving by mid-2018. The role comes with vice-chairpersonship of the FOMC – the Fed’s […]

Weekly Market Overview – Despite US assurances, trade war fears still weigh on markets

With the continued escalation of threats of tariffs between the US and China, markets suffered another week of negative returns. Global equities were down -1.0% in Sterling terms, dragged lower by US equities which returned -1.8%. Emerging Market and Japanese equities also suffered, down -1.1% and -1.0% respectively. European equities were relatively unscathed with a […]

Macro of the Week – Fed hikes rates, more expected

As widely expected the FOMC raised the Fed Funds Rate target by 0.25% to a range of 1.5% – 1.75%, in what was a unanimous decision by the committee. It was the sixth rate hike since the GFC as the central bank looks to ‘normalise’ interest rate policy and was the first major decision under […]

Weekly Market Overview – Despite scheduled talks, looming trade war roils markets

Donald Trump’s announcement of around $60bn of tariffs against China due to intellectual property violations saw markets experience large losses, as participants feared an escalating trade war. China is expected to hit back with levies aimed at industries and states where Mr Trump’s supporters are concentrated. Equity falls came despite Congress agreeing a $1.3tn spending […]

Macro of the Week – US confidence indicators soaring

The recent tumult in equity markets arrived despite robust macroeconomic data in the US, for example the latest earnings season saw 73% of companies beating expectations for earnings. Recent data for consumers and businesses appears to support this view. The NFIB Small Business Optimism index for February rose to 107.6 from 106.9 – the highest […]

Weekly Market Overview – Trade war concerns weigh on markets

Both US equities and the US Dollar fell last week when multinational companies such as Boeing were hit as Donald Trump sought to impose new tariffs on China, pressing China to cut its trade surplus with the US by $10bn. As a result, there is an increased likelihood of a trade war between the worlds […]

Macro of the Week – US nonfarm payrolls strong

In a reversal of the recent trend where good data is bad news for stocks, and bad data is good news, US equities rallied on Friday after the latest nonfarm payrolls report. The report showed the highest job creation […]

Weekly Market Overview – US jobs report eases inflation fears

Markets had a strong run last week with all major equity markets posting gains in both local and GBP terms, except for Japan which suffered a loss in Sterling. The market seems to have fully rebounded following the sell–off at the beginning of February, with the Nasdaq back at a record high. US equities led […]

Weekly Market Overview – Markets fear Taylorisation of Fed and trade wars

Markets continued their recent rocky period, with two separate events causing unease for investors. The first was Jay Powell’s first congressional testimony on Tuesday where he hinted at a faster pace of interest rate rises and stated a preference for rules based interest rate decisions. For example the Taylor Rule proscribes an interest rate for […]

Macro of the Week – UK GDP slowing

The UK economy grew more slowly than previously estimated in Q4 2017, increasing by 0.4% quarter-on-quarter according to the second estimate by the ONS. This figure was a 0.1% downgrade from the original estimate. The downward revision was due to slower […]

Weekly Market Overview – Recovery continues despite rates normalisation talk by Fed

The market sell-off at the start of February was largely attributed to fears of rising interest rates in the US, with concerns that planned increases in fiscal stimulus to an already strong economy meant the Fed was getting behind the curve. Last week various members of the FOMC, although notably not the Chair Jay Powell, […]

Macro of the Week – US inflation accelerates

US CPI inflation surprised markets, remaining unchanged in January at 2.1%, driven by sharp increases in clothing and energy costs. There had been expectations for a fall to 1.9%. Core inflation was also stable at 1.8%, again above expectations […]

Macroeconomic View – French unemployment down

French ILO unemployment dropped unexpectedly from 9.6% to 8.9%. It was further proof of the strength in the French, and subsequently, the European economy. European equities lost 1.5% briefly after the US inflation report was released, with figures higher than expected. The market recovered, but the move is indicative of the factors that affect traders. […]

Market Comment – Mind the earnings

Traders were worried again last week, as US inflation figures came in higher than expected, suggesting the possibility of steep interest rate hikes. With heightened volatility, a very good US earnings quarter went almost unnoticed. With the reporting season almost over, 75% of companies beat earnings estimates and 78% beat sales estimates. This is the […]

Weekly Market Overview – Equity markets bounce despite inflation scare

Despite a brief panic on Wednesday when US inflation figures came in higher than expected, stoking fears of accelerated interest rate rises, markets had a strong week across the board following 2 weeks of significant market weakness. US markets were up 4.4% in USD terms, however weakness in the currency meant the return in Sterling […]

Macro of the Week – US rate hike still on the cards

The recent sell-off in markets and spike in volatility has so far been met by a wall of silence from the new Fed Chair Jay Powell. On the day of being sworn in, Powell faced a drop of 1,175 […]

Weekly Market Overview – Nervous equity markets continue to slide

Concerns over US Government debt levels, softening global macro data and a potentially hawkish Federal Reserve once again lead to negative equity returns after a significant sell-off in the previous 2 weeks. All global equity markets are now in negative territory for the year in both local and Sterling terms. Last week US markets were […]

Macro of the Week – US wages accelerate

US hiring picked up in January and wages rose at the fastest pace since the GFC. Hourly earnings increased 0.3%, resulting in an unexpected year-on-year increase of 2.9%, up from 2.7% in December (which was also revised up from 2.5%). This was on the back of a nonfarm payrolls increase of 200k, which was upwardly […]

Weekly Market Overview– Equities fall on rising US yields

Equities suffered their worst week since 2016 and subsequently fell over 4% on Monday as concerns over rising US Government bond yields spilled over into risk assets. As of Monday, US 10Y Treasury yields were at 2.84%, having increased from 2.4% at year end, resulting in a total return of -3.1% over the period. The […]

Macro of the Week – US GDP disappoints

Provisional readings for US Q4 2017 GDP growth came in at 2.6%, slightly below the 3% figure expected by the market. This is an annualised figure and therefore growth for the quarter was actually only 0.1% behind expectations. Strong imports were the main reason for the surprise to the downside, subtracting 1.1% from the growth. […]

Weekly Market Overview – US Dollar slide sees negative equity returns for UK investors

Global equities were mostly positive in local terms last week, however a fall in the US Dollar, combined with Sterling appreciating, meant that returns for UK investors were generally negative. Weak US Dollar performance was largely due to a statement at Davos by US Treasury Secretary Steve Mnuchin being interpreted as suggesting that the US […]

Macro of the Week – German coalition considerations

German elections in November were met with cautious optimism by markets, with Angela Merkel’s CDU party gaining the most seats and seemingly in position to lead a coalition, so maintaining the status-quo in German politics. However negotiations have proven more difficult. The SDP, which claimed the second most seats, initially planned to be the main […]

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