© 2022 All rights reserved to Wealth DFM | Website by: Nivo Digital | Terms and Conditions
This policy explains how IFA Magazine collects, stores use, and shares personal information (including but not limited to information from which you can be personally identified such as your name, address, job title, company, email address, or telephone number) and information about your visits to the network, including the pages you view, the links you click and other actions taken in connection with www.ifamagazine.com, www.gbinvestments.co.uk, www.robopromedia.com, www.mvpromedia.com.
IFA Magazine Publications Limited may update this Policy at any time. It is your responsibility to check for updates to this Policy, as your continued use of the website denotes an acceptance of this Policy. Unless stated otherwise, IFA Magazine Publications Limited’s current Policy applies to all information that IFA Magazine Publications Limited has about you and your account.
Ripples of relief that inflation is being tackled by the Fed, as investors await Bank of England decision.
Wall Street higher on Fed’s 0.75% rate hike, amid rising inflation worries.
Covid worries rise for the Chinese economy.
Eyes on the Bank of England as policymakers are set to decide on interest rates.
HL Investor Confidence survey shows expectations of higher rates over next six months.
Brent crude hovers around $120 a barrel as supply concerns persist.
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown comments on the latest market and economic news:
‘Relief has rippled through financial markets that the Federal Reserve (Fed) hasn’t dropped the ball when it comes to trying to tackle inflation but there are still concerns that central banks are playing a tough game of catch up and could overshoot in their efforts to rein it in.
On Wall Street the S&P 500 closed up 1.4%, while in Japan the Nikkei has lifted by 0.5% but the Hang Seng in Hong Kong dropped by 1.5% Worries are rising about fresh outbreaks of Covid cases across the city, denting hopes of recovery from the scourge of the virus. With parts of Beijing and Shanghai also back in lockdown, concerns swirl about the virus becoming a persistent drag on the Chinese economy. European indices are set for a mixed session ahead of the key Bank of England decision, with the FTSE 100 opening lower as investors assess what impact rate rises could have on weakening economies.
The biggest interest rate rise by the Fed in almost three decades of 0.75% didn’t come as much of a surprise, given just how red hot consumer prices still are, but it’s a drift higher from the bank’s widely flagged ‘dot plot’, and a sign that inflation has been roaring higher at a higher pace than policymakers expected just a few months ago. There is a growing expectation that this hike will be followed by another 0.75% rise in an attempt to front load efforts and bring down demand more quickly, even though this is expected to dent growth and see unemployment rise. Risks that there will be an uncomfortably hard landing for the US economy remain but it seems policymakers feel this may be a price to pay given the inflation shock the world is facing.
The focus now is sharply trained on the Bank of England’s decision later. Worries have been rising that inflation could become too hot to handle for the Bank of England, given that the UK economy is already shrinking and is sorely lacking the insulation needed to protect itself from the impact of rate rises. There overall expectation is that it’ll keep the rate rise to 0.25% but given the harder line stance taken by the Federal Reserve, some policymakers may decide to swallow the bitter pill sooner rather than later and vote for a steeper hike of 0.5%. Although there are still high hopes that supply snarl ups around the world will start to ease, energy prices are staying stubbornly elevated, with Brent Crude hovering around $120 dollars. The price has crept up again after the International Energy Agency warned that supply will outstrip demand next year, as Russia feels the weight of embargos and demand is forecast to resurge in China.
More investors are factoring in higher rate rises in the immediate future given the eye watering pace of consumer price rises. According to the HL Investor Confidence Survey for June, 94% expect rates to be higher over the next six months, compared to 92% in May. But there has been a slight fall in the number of investors who expect rates to stay higher further on the horizon. 75% believe they will higher over the next 3 years compared to 82% in May. This could reflect worry about a looming recession and an expectation that there may be a limit to just how far rates will keep rising, given the fragile UK economy.’’
Europe open: Shares slip after Fed rate rise, Asos warning
Previous PostAsos warns on profits as returns weigh
Previous PostInchcape FY profit to beat market expectations
Harbour Energy launches $200m share buyback programme
Next PostFed and ECB – a counterpoint snapshot and show of commitment says Quintet’s chief economist
Next PostFranklin Templeton Institute Releases Latest Insights on Food Innovation and Related Investment Opportunities
Featured News
Reopening renews investor optimism in China
Investors across the globe are beginning to turn their attention back towards China, as the world’s engine of growth finally...
Capital Group announces start of long-planned leadership transition
Capital Group have today announced its board of directors has approved the election of leaders to new roles that will...
Life sciences and biotech offer untapped growth potential for 2023
Written by Andrew Craig, Conviction Life Sciences Company When you hear the term ‘life sciences,’ this may conjure images of...
Bank of Japan: Laying the Groundwork to Ease Yield Curve Control (YCC)
By Tiffany Wilding, PIMCO North American Economist, and Tomoya Masanao, Head of PIMCO Japan and Co-head, Asia-Pacific Portfolio Management Last...
Recent
Reopening renews investor optimism in China
Capital Group announces start of long-planned leadership transition
Life sciences and biotech offer untapped growth potential for 2023
This Week’s Most Read
The ESG issue of double materiality has real implications for the financial services sector and for companies in their reporting. In this article for Wealth DFM, Lavinia De Lucchi, Sustainability
Investors across the globe are beginning to turn their attention back towards China, as the world’s engine of growth finally appears set to exit its strict Covid restrictions, which have
As the Year of the Rabbit gets underway, Winnie Chwang, Portfolio Manager, Matthews Asia, tells Wealth DFM where she’s seeing the risks and opportunities for investment in China – and
Written by Ben Green, principal and co-founder of Atrato Group With ‘safe haven’ income assets such as government bonds suffering their worst year in decades, the classic 60/40 portfolio has
Investors may have been better off holding cash rather than buying shares in Chinese companies – but Chinese New Year could mark the beginning of a turnaround for the country
Quilter plc highlights: · Assets under Management and Administration (“AuMA”) of £99.6 billion at the end of December 2022, an increase of 3% from 30 September 2022. This reflected a
Written by Richard Bacon, Head of Business Development, Shard Capital I believe that the UK retail wealth management industry is about to be very rudely awakened from its slumber of
By Richard Parfect, fund manager at Momentum Global Investment Management Having booked my first skiing holiday in 11 years with some friends in Chamonix towards the end of January, I’m
Written by Andrew Craig, Conviction Life Sciences Company When you hear the term ‘life sciences,’ this may conjure images of scientists with white coats and test tubes trying to develop