S&P 500 & Nasdaq eke out new all time highs

Bear Bull

The S&P 500 and the Nasdaq moved into uncharted waters at close of business yesterday, 29th June 2021 both claiming new records New all time highs reached! The Nasdaq closed at an all time record high of: 14528 The S&P 500 closed at an all time high of: 4292 But are investors finally turning bearish on the S&P 500? Now that we have completed the first half of the year notching stellar U.S. stock gains – how likely is it that the S&P 500 will continue to charge to new…

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UK inflation reading higher than expected at 2.1%

Inflation

UK inflation jumped to 2.1% in the year to May As the UK economy opened up – consumer spending increased. The Consumer Prices Index (PCI) measure of inflation climbed from 1.5% in April, according to the Office for National Statistics (ONS), driven by the rising cost of clothes, fuel, food and drink. Inflation vs interest rates Inflation is now at its highest reading since before the pandemic, and this will place the possibility of interest rate hikes back on the agenda. Above Bank of England’s 2% target May’s reading was…

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Investors panic over rising U.S. bond yields

Tech

Tech stocks yield to bonds Are the days of simply loading money into stock market top tech stocks, regardless of valuation, finally coming to an end? The U.S. tech rout witnessed yesterday, Thursday 25th February, seemed to suggest this is the case. The Nasdaq experienced its biggest one day loss since October 2020. Yields The U.S. ten year Treasury yields in February 2021 have moved from 1.13% to a high as 1.61%, a rise of 48 basis points, the highest level in a year. This move has occurred way ahead…

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The Bank of England increases UK economic support by £100 billion

Quantitative Easing

More QE The Bank of England announced Thursday, 18th June 2020 more support by increasing QE – Quantitative Easing by injecting a further £100 billion into the UK economy. This increase brings the total to £745 billion. Bank policymakers voted 8-1 to increase the size of its bond-buying programme and said there was evidence that the UK economy would be impacted less than initially feared. The Bank said more recent indicators of economic activity suggested the economy was starting to bounce back. It was reported that there had been a…

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Nasdaq hits warp speed, breaks 10,000 barrier

Nasdag

Real or fake recovery? The Nasdaq hit a record all time high on 9th June 2020 as it continued its unrelenting upward march, as big bets push indices ever higher on the hope that economies around the world will re-open quickly. I’m not so sure – I am beginning to wonder if this premature post pandemic ‘recovery’ is truly sustainable. Am I allowed to call it fake? The physical and psychological damage the coronavirus has done to people and to global people economies is clear for all to see. But…

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Bank of England hold interest rate, no new stimulus

Bank of England

The Bank of England held rates at 0.1 per cent and offered no new stimulus measures in its asset purchase programme. Decline in consumer confidence Headline BoE announcement: 14% fall in UK GDP this year and unemployment at 8%. Biggest annual fall in GDP since 1706 The BoE said indicators of UK demand have generally stabilised at ‘very low levels’ with a reduction in the level of household consumption at around 30%. According to the MPC statement, ‘Consumer confidence has declined markedly, and housing market activity has practically ceased’. Sales are…

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UK Bank of England interest decision, rate held at 0.75%

Bank of England interest rate

BoE decision After much media hype surrounding the ‘will they won’t they cut interest rate debate’, the Bank of England‘s Monetary Policy Committee – (MPC) decided Thursday 30th January 2020 to keep interest rates unchanged at 0.75% This is Mark Carney’s final rate call as the UK commences Brexit stage one, and officially and legally moves away from the EU. Carney’s last call Brexit takes centre stage The UK will now start Brexit ‘stage two’ negotiations in earnest as we officially exit the EU at 11pm on 31st January 2020.…

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Scheduled market news events 29th January 2020

Scheduled market news events

Scheduled market events U.S. – The Federal Reserve due to announce interest rate decision at: 19:00 GMT followed by press conference at: 19:30 GMT. U.S. current interest rate is: 1.75% – the consensus is for it to remain at 1.75% Germany – consumer confidence survey data due UK – Nationwide house price data due U.S. – home sales data due at: 15:00 GMT German consumer confidence Consumer confidence survey data shows a small increase from previous the reading of 9.7 to 9.9 UK house prices climb in January UK annual…

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World Bank – debt accumulation worry

World Bank Debt Worry

Last week the Washington based World Bank published its bi-annual Global Economic Prospectus. Debt accumulation They point out that over the last 50 years the world has seen 4 waves of debt accumulation and that the latest one, which started in 2010 was ‘’the largest, fastest and most broad-based increase’’ where historically low interest rates may not limit the chance of financial meltdown. Allow me to repeat the last of that statement part: ‘where historically low interest rates may not limit the chance of financial meltdown’. History says it doesn’t…

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Fed announce interest rate cut of 0.25%

Interest rates down

The Federal Reserve announced on 30th October 2019 an interest rate reduction of 0.25% This will lower the Federal funds target rate to between 1.5% -1.75%. It was also reported earlier Wednesday that third quarter GDP growth rose at a better than expected 1.9% annual rate. The Fed signalled a pause – the FOMC statement removes comment to ‘act as appropriate’ when talking about rate-cut flexibility. Jerome Powell has previously described the easing as a ‘mid-cycle adjustment’ to guard against possible downside risks. Economists said the U.S. central bank did…

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