Global stock markets were mixed last week. Europe was generally higher, Asian markets were mostly flat to lower, but the US out-performed with the S&P 500 up for the fourth consecutive week. An impressive November so far following the disappointing performance of the previous three months.
Tuesday saw the release of the minutes from the most recent US Fed policy meeting. With inflation trending lower, the market is pricing in a close to zero chance of the Fed raising rates next month but there were no hints in the minutes that the Fed might consider cutting rates anytime soon. Members agreed to maintain a “restrictive” stance until inflation gets closer to the 2% target. Even so, most investors believe the Fed is done with hiking and the US Dollar has been falling throughout November as a result.
GBPUSD was up last week, and again today (Monday) reaching its highest level since early September. The market expectation is that the Bank of England will most likely maintain its Bank Rate at a 15-year high of 5.25% until the middle of next year at least.
In the UK, Stronger-than-anticipated PMI data caused the yield on the UK 10-Year Gilt to bounce above 4.3% last week, but it’s back below 4.25% today.
Finally, the Chancellor of the Exchequer, Jeremy Hunt, delivered his Autumn Statement last week. Read our summary of the key points here.
UK Market Chart 24th November 2023
US Market Chart 24th November 2023
US Risk Barometer 24th November 2023
Europe Risk Barometer 24th November 2023
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