Good news is still bad news for markets

Good news is still bad news for markets

Stocks in the U.S. and Europe were lower last week as strong US economic data and rising oil prices weighed on the outlook for inflation and kept pressure on central banks.

US data last week showed that ISM Services PMI rose unexpectedly to 54.5 in August. The price of US Crude Oil rose to its highest level since November.

US inflation data for August will be released this Wednesday, and the next Fed decision is due next week. Investors expect the Fed to keep interest rates on hold this month but further out remains in doubt.

A statement from Japan’s central bank over the weekend indicated that the era of negative interest rates for the country may be coming to an end. This would be another significant development for investors to weigh.

In the UK, Bank of England governor, Andrew Bailey, said he expects inflation to “fall quite markedly” and with regard to interest rates, suggested that we are “much nearer now to the top of the cycle”.

UK Market Chart 8th September 2023

US Market Chart 8th September 2023

US Risk Barometer 8th September 2023

Europe Risk Barometer 8th September 2023

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.’

Download Our Free Brochure