Not for the first time, this month we find ourselves writing something very similar to what was written the previous month and indeed, the months before that. Markets recognise economic recovery is clearly on the march but Covid-19 outbreaks (and variants thereof) together with higher inflation, temper optimism. If rising prices are indeed temporary, herd…
Markets remain range bound. Central banks continue to emphasise support (or is it endless subsidy?) despite economies reopening. On the other hand, Covid flareups are still happening and while the Biden administration’s chief medical officer, Dr Anthony Fauci, made it clear he didn’t expect a return to lockdowns, he commented that “things are going to…
Markets have generally traded within narrow ranges. On the one hand, the reopening of economies has provided added impetus to artificially subdued economic growth. On the other, rising inflation poses the question of what central banks are going to do about it. In the US, inflation is now running at 5.4% while in the UK…
Are we there yet? Those familiar with transporting children on long journeys will instantly recognise the question. But from an economic perspective, how close to ‘there’ are we in terms of returning to normality after Covid-19 laid waste? Sometimes, it seems very close indeed but then at others …. it seems to slip further away…
Equity markets have retained their poise. Lockdowns are, for the most part, being relaxed and while normality still looks a long way off, the move towards it is undeniable. In the UK, the economy is forecast to attain its pre pandemic peak by the middle of next year, aided greatly by forced saving delivering a…
Markets have remained strong, buoyed by vaccine programmes and potential paths out of lockdown assuming greater visibility. Having said that, with various geographical areas moving at different speeds and talk of third waves, there’s obviously a long way to go before anything resembling normality can resume. Economically, inflation and economic growth dominate discussion. Globally, growth…
World markets have, belatedly, started to consider the return of that mythical beast, inflation. Long considered extinct by many, it’s a species whose DNA looks eminently capable of resurrection in the ubiquitous economic laboratory experiments now being undertaken by just about every government and central bank. Stock markets are directly affected by bond markets because…
Equity markets remain perky, the result of global, wall to wall economic stimulus. This largesse now resembles a teenage party that’s out of control at the point when the parents return home. However, instead of calling a halt, they fetch another crate from the garage and join in. In the US, President Biden’s pandemic relief…
Global markets surged after the Democrats secured the U.S. Senate. With both houses now under their control, investors reacted in Pavlovian fashion, anticipating greater monetary stimulus alongside a more expansive fiscal agenda. We’ve said it before (and many times before that) but how more expansive can any of this get? Sovereign borrowing is close to…
Well, we have a deal with the EU. Proof, if it were needed, that whatever one might negotiate, a conclusion will only result once one side makes it clear the timescale for negotiation is not indefinite. A combination of several Covid-19 vaccines, the EU deal and promises of continued global economic stimulus have encouraged equity…