Global stock markets were mixed last week but in the main tended to finish the week higher – a resilient performance considering recent events in the Middle East. Not surprisingly though Oil rallied strongly last week as did Gold and the US Dollar.
Despite the terrible situation developing between Israel and Hamas, investors continue to concentrate on interest rates as the main focus. Some Fed members commented last week that the recent jump in long-term rates may mean there is “less of a need to raise the Fed Funds Rate” – to quote Dallas Fed President Lorie Logan.
The US annual headline inflation rate for September came in as unchanged from August at 3.7% – the market had been expecting a slight fall. However, core CPI (which excludes food and energy) slowed to 4.1% which was the lowest in two years.
The UK Economy rebounded in August. GDP grew 0.2% from July, in line with expectations but the International Monetary Fund reduced it’s GDP forecast for the UK in 2024 to 0.6% (from 1%).
UK Market Chart 13th October 2023
US Market Chart 13th October 2023
US Risk Barometer 13th October 2023
Europe Risk Barometer 13th October 2023
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