Insights Market views

close

Choose a category.

• All articles
• Sustainability
• Lifestyle
• Business activities
• Charities

Equity markets experienced a shake-out over concerns the US economy may be stalling and concerns that the Federal Reserve was too late to cut rates. This was exacerbated when the Bank of Japan (BoJ) raised interest rates and guided towards more increases.

Whilst the financial press has focused on the larger-than-expected 50-basis point cut in the United States and the Labour government’s challenges, the recent major policy announcements by the People’s Bank of China (PBoC) have featured less in the news.

While the Fed targets unemployment, the BoE remains focused on inflation, likely proceeding with more gradual rate cuts unless economic conditions change significantly.

Central banks’ communication strategies shifting from forward guidance to data dependency has increased market volatility and made forward planning more challenging, as central banks now rely on the latest economic data.

September has got off to a volatile start, as concerns mount over the state of the US economy and equities and bonds are now negatively correlated—bonds have outperformed while equities have fallen, as concerns are no longer driven by inflation but a weakening labour market and its potential to weigh on US growth.

News that the pound has strengthened to its highest value against the dollar will be welcome to those enjoying the last of the summer holidays, as those pounds stretch further.

It seems hard to believe it has only been four weeks since Kamala Harris took over the Democratic nomination, after President Joe Biden stepped aside over concerns of his age and health.

If the first half of the year was all about the extreme concentration in the S&P 500’s gains, the market moves after 10th July showed just how important diversification is for long-term investors.

As athletes from around the world compete in the Paris 2024 Olympics, we take a closer look at the economic benefits of hosting the Olympic Games and whether these benefits outweigh the soaring costs.

In the aftermath of the Russian invasion of Ukraine, western central banks became decidedly hawkish by initiating the fastest cycle of interest rate hikes in decades in an attempt to combat inflation. In contrast, Japan remained dovish, keeping interest rates low after decades of weak growth and deflation.