Central bank rhetoric in western developed economies has evolved into a greater determination to arrest inflation through tighter monetary policy via higher short-term interest rates
Hurry Up (raise rates while you can) As we said in May’s mid-monthly update, monetary policy is about being seen to be doing something in the face of steep increases in inflation in developed economies. The reality is that central banks are more concerned with tight labour markets and wage pressure than the recent rises […]
T. Bailey is looking for a Quantitative Investment Analyst to join its investment team.
May saw financial asset prices reflect a concern over how high western central banks would hike official short-term interest rates First signs of inflation peaking in the US and an indication of the US Federal Reserve becoming more pragmatic to avoid a recession later in May, brought about some respite for risk asset prices after a torrid time in the first three weeks of May.
Growth Fears as Monetary Policy Plays Catch-Up Monetary policy is about being seen to be doing something in the face of steep increases in inflation in western economies. The reality is that central banks are more concerned with tight labour markets and wage pressure than the recent rises in CPI as a result of […]
Another tricky and turbulent month for investors. While there were bouts of movements in the opposite direction, it was a case of equities down, bonds down, commodities steady to firmer, US dollar strong.
Bonds Yield to Inflationary Pressures Outside of watching events unfold in Ukraine and the ‘West’s’ response, the major development for financial markets has been the continued rout in bond markets. Shortages of key materials, exacerbated by the Ukraine conflict, plus shipping delays from Covid-related lockdowns at major Chinese ports, have underpinned the ‘higher inflation for […]
March started with Russia’s invasion of Ukraine dominating the headlines having occurred just a few days earlier. Commodity prices were firm on the back of supply concerns with oil surging well beyond $100 per barrel before expectations of a release from the US oil strategic reserve helped it back towards the $100 mark at month […]
Imbalances While previously the biggest impact on financial markets were inflationary concerns and monetary policy responses as Covid ebbed, Russia’s invasion of Ukraine on 24 February has taken top spot for financial markets’ concerns and nervousness. We have no great insight on when or how that conflict will be resolved so we will refrain […]
Financial markets in February were buffeted by inflationary concerns, likely monetary policy responses and the simmering tensions from Russia’s aggression towards Ukraine. The latter exploded in the final week of February to widespread international condemnation of the aggressor.
As financial markets watch the tensions between Russia and NATO, fixate on the number of interest rate hikes the US and UK central banks will impose this year and digest the announcements of companies’ latest quarterly results, it’s worth bearing mind that investing/saving is a longer-term phenomenon
The key influence on financial markets in January has been inflation. Particularly, the US central bank, and its acknowledgement of stronger economic growth and crucially, inflation.
The opening line from Rudyard Kipling’s poem, If, which if written by a wise investor, might have gone on to say you can pick up some attractively priced companies.
2022 will be a key year for climate change as part of the ESG agenda. ESG is not just about the ‘E’ for Environment but also about the ‘S’ for Social and ‘G’ Governance.
It was perhaps surprising to see stock markets end 2021 so positively. December saw most major developed equity market indices in positive territory. The exception was Japan, which was slightly in the red for the month.
