Nearly all the price action in markets last week came in a burst of euphoric demand following the publication of relatively benign American inflation data. US inflation fell from 8.2% in September to 7.7% in October, with the details revealing that inflationary pressures were easing across the board: the pace of inflation decelerated in the property and service sectors between September and October, and there were outright declines in the cost of used cars, rent, clothing and household furnishings. One data-point does not constitute definitive evidence and, more broadly, current economic data confirms that a slowdown is underway but, nevertheless, this was enough to send markets into an epic rally. Expectations for interest rate rises in the US dropped like a stone, along with the safe-haven US dollar. US government bonds surged across the board, and five-year bonds enjoyed their biggest one-day gain in a decade. The S&P 500 stock market index had one of its best days since the start of the pandemic, rising by 5.5%. The technology-heavy Nasdaq index, which had been beaten down by the fear of rate rises, rocketed by over 7%. European stock markets surged in sympathy: the Euro Stoxx 50 index had gained over 3% by the end of the day and the UK-orientated FTSE 250 gained nearly 4%...

Stocks featured:

ASML Holding, Burberry, Disney, Hermes International, LVMH, Richemont and Taiwan Semiconductor Manufacturing Co.

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.

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Monetary policy and economic data were in the driving seat last week, with both the US Federal Reserve and the Bank of England scheduled to announce monetary policy decisions. The Fed raised the possibility of a slowdown in the pace of interest rate rises, adding new language to its statement on monetary policy to the effect that it would consider the cumulative impact of rate rises on the economy when setting rates. This was hardly the “pivot” towards more dovish monetary policy that markets were hoping for, but it was enough to unleash a rally. Unfortunately, the rally lasted all of half an hour, by which time Fed Chairman Powell’s press conference had squelched any optimism, saying that rates were actually likely to go higher than expected, even if they went higher in smaller increments...

Stocks featured:

Airbnb, Apple, GSK and Tesla

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.

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Stock markets ran the gauntlet this week of some weak financial performance from the technology industry, as well as disappointing economic data, but without sustaining much damage. In fact, the resilience of markets to bad news raises the possibility that the recent bottom could mark the end of the current bear market. 

This hope is dependent on central banks softening the tone of their comments on interest rate rises, examples of which were in evidence twice during the week. The Bank of Canada increased rates by 0.5% rather than the 0.75% that markets had expected, and noted that past rate rises were beginning to affect household spending and housing markets. More importantly, the European Central Bank met expectations with a 0.75% rate rise but hinted that a slowdown in the pace of tightening is imminent with the comment that "substantial progress" has already been made towards tighter monetary policy.

Stocks featured:

Alphabet, Amazon, Apple, Caterpillar, Coca-Cola, Mastercard, McDonald’s, Meta Platforms, Microsoft, Unilever and Visa

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.

Stock markets managed to build on their rally of the previous week as the flow of news turned from unremittingly bad to merely “mixed”, and the steady drumbeat of company profit warnings was occasionally drowned out by some surprisingly upbeat reports. Stock markets were even able to shrug off another dismal performance by bond markets, helped by a relatively steady week for the US dollar. 

Stocks featured:

• Netflix
• LVMH
• American Express
• Apple
• Microsoft
• Alphabet
• Amazon
• Meta Platforms 

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It was a turbulent week for markets and British politics. On 14th October Kwasi Kwarteng was sacked as the Chancellor meaning he was the second shortest serving Chancellor in British history at 38 days. He was replaced by Jeremy Hunt who swiftly announced a reversal of the majority of the tax cuts previously outlined, helping to bring nominal yields down on government bonds and restore some calm to financial markets. Following the mini-budget on 23rd September, where the prospect of a large surge in government borrowing on the back of the announced spending increases and tax cuts, the UK markets had been extremely volatile. Nominal yields on government bonds surged with the 30 year gilt yield crossing 5%, the pound fell and equity markets had seen high volatility. After being down just over 2% during the past week markets rebounded on first the rumour and then confirmation of Kwarteng’s sacking to finish 17th October broadly flat.

Stocks featured:

ASML, Goldman Sachs, Hargreaves Lansdown, Johnson & Johnson and Moneysupermarket

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.

Stock markets started the week brightly enough, with a two-day rally as good as any since the start of the pandemic. But it was not to last, as OPEC dealt a blow to investors outside the oil sector, and to consumers battling inflation, by opting to cut oil production by two million barrels a day. This was enough to trigger a rally of nearly 10% in the price of oil. The decision came despite frantic lobbying by US officials and a visit by President Biden to Saudi Arabia in July. Some commentators viewed this as a weaponisation of oil prices amidst an energy power struggle between America and Saudi Arabia, and the US government described Saudi Arabia as having chosen to align itself with Russian interests.

Stocks featured:

Advanced Micro Devices, Imperial Brands, Intel Corp, Levi Strauss & Co and Samsung Electronics

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.

It was a week of unremittingly bad news that sent stock and bond markets to new lows for the year. The week opened with the furore over the government’s mini-budget still rippling through markets. British banks withdrew mortgage offers in response to the volatile environment for interest rates unleashed by the mini-budget and, in an unusual sign of international frustration, the mini-budget drew criticism from the International Monetary Fund, US central bank officials and the US government. 

Events reached a climax when the Bank of England stepped in to prop up the market for British government bonds. Having approved a plan to relinquish £80 billion of gilts just a few days previously, the Bank dramatically reversed direction with a commitment to purchase another £60 billion. A £140 billion U-turn does not happen without good reason, and it subsequently turned out that the collapse in gilts threatened the stability of pension funds worth about £1 trillion, which were faced with the prospect of having to sell assets in order to remain solvent. These sales would have further depressed asset prices, prompting another loss of confidence in the gilt market and a potential downward spiral in British assets. The Bank’s intervention did the job, stabilising the gilt market and helping the pound to recover most of its lost ground. The fact remains, however, that the enormous UK pension industry has somehow managed to commit itself to strategies that could, under admittedly very unusual conditions, prompt a vicious circle of selling.

Stocks featured:

Apple, BHP Group, Boohoo Group, H&M, Next, Nike, Porsche and Tesla

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.

Markets were already enduring a torrid time when the British government dropped its fiscal bomb on Friday. Earlier in the week, the US Federal Reserve had raised rates by 0.75% as expected, but there was no let-up in the hawkish tone as the Fed simultaneously cut its growth forecast and lifted its own expectations for future interest rates. Once again, the Fed is signalling that it is ready to tolerate a recession in order to combat inflation. This has been the message for a while, but markets are now repricing how far the Fed will go, and how deep any recession might be.

Stocks featured:

Deutsche Bank, Credit Suisse, Ford Motor Co., JD Sports Fashion and Unicredit

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.

Bad inflation data from the US wiped out a promising, four-day rally with such violence that new lows for the year are looming for many assets. US inflation fell to 8.3% in August from 8.5% in July, a decline to be fair, but not the decline the market was looking for. In fact, aside from the expected moderation in food and fuel prices, there were hefty gains in goods and services as diverse as new cars and trucks, vehicle repair, dental charges and hospital services. Some optimists had been hoping for signs that inflation would soon roll over: the hope was margins would fall from their current, unsustainable levels as supply chains normalise; the strong dollar and lower inflation outside the US, especially in China, would wear down import prices; rent inflation would follow the sharp drop in house prices and rents downwards, and a gradual moderation in wage gains would reduce inflation across an array of services that are sensitive to labour costs. While few doubt the logic of this reasoning, which applies both in the US and elsewhere, the inflation figures pushed out the date that this normalisation will commence. In the short-term, meanwhile, any chance of a 0.5% hike at this week’s Federal Reserve meeting has gone.

Stocks featured:

Amazon, Apple, Fedex Corp, Starbucks and Uniper

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.

Stock markets broke their losing streak with impressive rallies across-the-board globally, despite more tough talk by central bankers and the absence of a recovery in bond markets. European stock markets recovered all their losses caused by last week’s total suspension of natural gas supplies from Russia to Europe and, counterintuitively, European gas prices have actually declined by nearly 50% since then. American petrol prices, meanwhile, fell to their lowest levels of the past six months.

Stocks featured:

Alphabet (Google), Apple and Oracle

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.