Overall Market Backdrop, March On the 23rd March, the Bank of England (BofE) announced a quarter point (0.25%) rate rise to 4.25%, marking their 11th successive rate rise, hitting the highest level since 2008. Across the pond, markets started the month expecting Fed rates to be higher for longer, however the mid-month banking crisis was […]
Overall Market Backdrop, February On 24th February 2022, Russian forces rolled into Ukraine, hoping to take over the country in a matter of days. One year later, the ongoing conflict remains a key risk both economically and geopolitically. At its meeting on 1st February 2023, the Bank of England’s Monetary Policy Committee (MPC) voted by […]
Overall Market Backdrop, January On 19th January, the U.S. government hit its borrowing ceiling of $31.4 trillion (as voted for back in December 2021 in Congress), raising concerns that any form of default would cause catastrophic effects on both domestic and global economies. Global equity markets started the year strongly, with the S&P 500 climbing […]
Overall Market Backdrop, December On Wednesday 21st December, it was announced that UK government borrowing hit £22bn for November, nearly three times the £8.1bn reached in the same month last year. UK house prices fell for the fourth consecutive month in December, marking the longest contraction since the 2008 financial crisis, as rising interest rates […]
Overall Market Backdrop, November Notably, Energy remains the best performing sector after record third quarter profits are announced – with BP announcing profits of$8.2bn (£7.1bn) between July and September. Global semiconductor chip shortage caused by pandemic-induced supply chain disruptions and unprecedented demand may cause ongoing pressure to the communication service sector for the foreseeable future. […]
Overall Market Backdrop, October Investors have welcomed Sunak’s appointment as prime minister, with the pound reaching its highest level since mid-September. The annual inflation rate in the UK rose to 10.1% in September, from 9.9% in August. Traders await the Bank of England’s monetary policy decision, with expectations being that interest rates will rise by […]
Overall Market Backdrop, September Developed markets struggled throughout the month as they continue to battle against high inflation, monetary tightening and lower growth expectations. The US 10-Year Treasury yields saw a huge uplift and ended at 3.80%, 67 basis points higher than the start of the month. Minimum Volatility was the best performing factor for […]
Overall Market Backdrop, August Developed markets struggled in August as they continue to battle against high inflation, monetary tightening and lower growth expectations. The US 10-Year Treasury yields saw a change in trend and dropped by 33 basis points, ending at 2.64%. Momentum was the best performing factor for August, returning 1.91%. In the UK we […]
Overall Market Backdrop, July The new quarter brought with it newfound positivity for developed equity markets; seeing strong gains with the S&P 500 leading the way with 8.97%. While equity markets showed promising returns in July there was still evidence of a slowing global economy coupled with inflation reaching new highs. The US 10-Year Treasury […]
Overall Market Backdrop for June Bear markets continued to run in June with all Global markets ending in the red zone fuelled by growth concerns, inflation and volatility. Central banks are showing a united front in having a hawkish stance to battle inflation. While the US 10-Year Treasury yields did end up higher at […]