Data from the Office for National Statistics (ONS) this morning shows that UK Consumer price inflation slowed to 2% (year-on-year) in July which is the Bank of England target. The fall from 2.5% in June was more than expected and is the first downtick since February.

Stocks had a fairly muted response with a number of other issues in the balance including the global spike in COVID-19 infections and its possible impact on economic recovery, a strong earnings season in US and Europe and events in Afghanistan.

Investors will be studying the minutes from the US Fed’s latest meeting, released today, looking for any clues that the view on inflation and tapering could be updating.

Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy. This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’