Posts Tagged financial markets

Asia remains the centre of attention on the back of a major Chinese stimulus program which has triggered a sharp rally in its stocks. This comes after two months where Japan experienced significant currency volatility and a “flash crash” in its stocks.

2024 has been a very good year for investors so far, with stock markets in the UK, US and Europe all reaching record highs. Signs of weakness have emerged in recent weeks, as companies report their latest earnings: valuations in the US are high and some profit taking has occurred. The UK stock market appears cheaper, with an improving economy to boot. Many investors believe inflation is finally under control.

2024 always promised to be a busy year for elections, with one half of the world’s population heading to the polls. As far as financial markets are concerned, political surprises have now bubbled up in several countries within a short period of time. With much still to be decided by voters, there is greater uncertainty in the short-term investment outlook. However, inflation remains on a declining path in the UK, US and Europe, while economic growth appears strong.

Last month we said ‘the key economic indicators could prove not too hot, nor too cold, but just about right for investors to feel comfortable’. There can certainly be no doubt about the stock market’s favourite fairy tale after November’s gains: Goldilocks wins, hands down. With inflation cooling rapidly and GDP and employment figures remaining stable on both sides of the Atlantic, the stock market has shaken off the bears and moved markedly higher.

October was another difficult month for investors - the culmination of three consecutive months where stocks and bonds have declined together. However, the US and UK central banks provided “dovish” statements on November 1st and 2nd, stating policy is adequately restrictive in light of slowing inflation. Markets are now forecasting that further interest rate hikes are highly unlikely and have entered the new month on a positive note.

The first half of 2023 produced good returns from overseas stock markets, as most economies proved more resilient than expected, despite forecasts of a recession at the beginning of the year. As the second half of 2023 progresses, those gains are being given back as higher interest rates and rising oil prices are taking their toll once again.

Most of August felt like a return to 2022, with the US Dollar Index strengthening considerably (+4%) and signaling a risk-off move which has seen stocks and bonds decline together. However, the final few trading days saw material gains as inflation, employment and savings data suggested the overheating US economy may be cooling down. Investors are keen to see the end of interest rate hikes and a return to stable financial conditions.

2022, for investors, was one of the most dramatic in history. We take a look at what the outlook might be for the year ahead.

Against a backdrop of slow global growth, stubbornly high inflation, rising interest rates and growing geo-political tensions, markets continued to perform poorly in Quarter 3.

Our latest webinar recording suggests it's never too early to discuss inheritance and with inflation and the cost of living dominating headlines we also provide an information update on the markets.

The first Quarter of 2022 was dominated by the invasion of Ukraine continuing the market's rollercoaster ride.

The Russian invasion of Ukraine is deeply concerning on many levels, creating the largest humanitarian crisis in Europe for decades. Growing sanctions against Russia is adding to market volatility. Looking after our clients' investments is our highest priority.