Following the turmoil that gripped markets in April, largely driven by the surprise imposition of US "Liberation Day" tariffs, May saw equity markets recover lost ground.
Global markets were rocked in April as the Trump administration ratcheted up trade tensions between the US and the rest of the world, igniting fears of a slowdown in global growth. The month began with a jolt as US President Trump unveiled sweeping tariffs on imports, branding the move “Liberation Day”. The announcement triggered sharp […]
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March continued the story of significant market turbulence, a feature of 2025 so far, as geopolitical and policy shifts, largely emanating from the US, drove a souring of sentiment and increased financial market volatility. In Washington, President Trump has continued to escalate trade tensions by drip-feeding announcements of new tariff plans. This haphazard approach has […]
The opening months of 2025 have underscored the transformational forces reshaping the global market trends of recent years. Hot on the heels of DeepSeek, a Chinese entrant to advanced AI models, February began with the announcement of yet another model, called S1, but this time developed by Stanford and Washington University researchers. Designed to compete […]
The opening month of the year has been dominated by news from the US that has set the tone for global financial markets. Robust US macro data at the start of the month showed continued strong US jobs growth, accompanied by a decline in the unemployment rate and solid growth in earnings.
Donald Trump’s decisive victory in the US presidential election significantly influenced the news in November and provided a boost to the US equity market. Although the specific economic policies that will be implemented remain uncertain until after his inauguration in January 2025, campaign promises to impose tariffs have raised concerns about inflation and the potential […]
The US economy continues to exhibit notable resilience, particularly in terms of consumer spending. Many consumers and businesses secured low interest rates during the pandemic, with fixed-rate mortgages serving as a prominent example, thereby mitigating the impact of current higher interest rates. Fiscal policy has been expansive, with the United States running a 6% budget […]
Global equity markets achieved positive returns in aggregate for the month despite a significant downturn early on. Source: FE Analytics Numerous wide ranging factors contributed to market stress including: Berkshire Hathaway’s announcement that it had halved its Apple Inc. position, escalating tensions between Israel and Iran in the Middle East, comments from the Bank of […]
August witnessed volatility rarely seen in financial markets. Initial blame for the two day financial market dislocation was laid at the door of weak US unemployment data suggesting that a US recession was imminent. Less than a week later, a benign jobless claims release led to a 2% plus bounce in US equities.
Downs and Up As inflation continued to subside in western developed economies, so the inevitable official interest rate cuts’ debate swelled. More on that below. China belatedly cut rates in an attempt to boost its ailing economy. In contrast, the Bank of Japan finally grabbed the moment to raise interest rates. Breadth The publication of […]
Margins Fine This past weekend gave us examples of fine margins. Spain’s winner in the Euro final against England being just onside and England’s chances being cleared off the line with just a couple of minutes to go. For followers of the oval ball, Ireland’s last minute kick to beat South Africa was another. Crucially […]
Financial markets’ fixation with US unemployment data, despite its poor construction and large revisions, brought about a tough start to June.
