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A one-two punch of central bank meetings
The action switched back from equity to bond markets last week, as a one-two punch of central bank meetings reinforced the hawkish change in monetary policies. This was then followed by a positive shock in key US employment data that sent bond yields spiralling upwards. First up was the Bank of England, which raised rates - as expected - but also tried to send a relatively dovish message, reinforced by the Governor’s plea to markets to “not get carried away”. This messaging strategy didn’t work, mainly because the composition of views and votes on the bank’s Monetary Policy Committee shifted massively towards faster and bigger rate rises. In fact, four of the committee’s nine members had voted for a half-percentage point rate-rise, arguing that it was justified by the acceleration in wages at the turn of the year, and by the recent rise in the public’s inflation expectations. The committee also agreed unanimously to reduce the bank’s holdings of bonds, signifying the change from quantitative easing to quantitative tightening.
Stocks featured:
- Amazon
- Meta Platforms
- Paypal
- Spotify Technology
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
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By Walker Crips Investment Management Limited
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The action switched back from equity to bond markets last week, as a one-two punch of central bank meetings reinforced the hawkish change in monetary policies. This was then followed by a positive shock in key US employment data that sent bond yields spiralling upwards. First up was the Bank of England, which raised rates - as expected - but also tried to send a relatively dovish message, reinforced by the Governor’s plea to markets to “not get carried away”. This messaging strategy didn’t work, mainly because the composition of views and votes on the bank’s Monetary Policy Committee shifted massively towards faster and bigger rate rises. In fact, four of the committee’s nine members had voted for a half-percentage point rate-rise, arguing that it was justified by the acceleration in wages at the turn of the year, and by the recent rise in the public’s inflation expectations. The committee also agreed unanimously to reduce the bank’s holdings of bonds, signifying the change from quantitative easing to quantitative tightening.
Stocks featured:
- Amazon
- Meta Platforms
- Paypal
- Spotify Technology
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.