Today, Kevin Kidney, Head of Asset Allocation and Matt Henderson, Portfolio manager, review the data from a week which provided record highs in global equities as well as UK employment. US inflation isn’t dropping to the Federal Reserve’s target, however the underlying factors are constructive with strong service sector data and robust employment in major economies. Will rate cuts be needed at all in the US?

This morning, Kevin Kidney, Head of Asset Allocation, discusses the economic factors that have resulted in a new all time high for global equities and the subsequent shift in narrative away from US led equities to the European market. This is turn is feeding a constructive earnings story for global corporates with positive revisions across multiple economies.

Today, Chris Leyland, Director of Investment Strategy, looks at the recent comments made by Fed Chairman Jerome Powell on the slowing of the rapid disinflation which was a key theme in 2023. Navigating the path of inflation has not been smooth but as economic factors shift, will the Federal Reserve change direction?

Paul Durrans, Investment Director, discusses the UK labour market data and how the rising unemployment rate will influence the Bank of England’s next interest rate decision in June. Despite the slight deterioration of employment figures, workers are still benefiting from higher pay. 

Matt Henderson, portfolio manager, looks to the week ahead with the upcoming UK employment data and both the US and European inflation data. With different economic dynamics at play, how will this affect their respective central banks perspective on interest rates?

Today, Paul Durrans, Investment Director and Faye Graham, Investment Analyst, cover the Bank of England’s decision to hold interest rates and the strength of global equities led by the UK. Furthermore, why the team are optimistic about future returns from multi-asset portfolios.

Kevin Kidney, Head of Asset Allocation, covers the imminent developments from the UK surrounding the Bank of England inflation forecasts and market insight into Friday’s GDP print. The refreshed forecast is likely to chart a lower path of inflation over the next two years and will be critical in deciding monetary policy moving forward. Could UK inflation fall closer to 1% this quarter?

Today, Paul Durrans, Investment Director, looks into the encouraging UK construction data which shows noticeable improvements in both commercial construction and civil engineering. However with house prices stagnating in April after a March contraction, housebuilding firms will eagerly be awaiting the Bank of Englands decision to lower interest rates. Will this help stabilise a volatile mortgage market?

Today Matt Henderson, Portfolio Manager, looks to the week ahead and the Bank of England’s interest rate decision as well as the UK GDP report released on Friday. With the UK’s strong growth and economic data it has caused consensus estimates to rise, but what does that mean for equity markets?

This week, our expert Investment Management team review the factors that have caused US interest rates to remain at 5.25%. 175,000 jobs were added to the US economy and this has led to equity and bonds markets rising. Equally, companies such as Amazon and Apple have exceeded revenue expectations. All factors are considered by Jerome Powell in the Federal Reserve’s decision to hold interest rates, but how have markets reacted?