The latest updates and articles from Arbuthnot Latham
US inflation dominated the headlines this week, with the headline number rising by a higher than expected 3.5%, pushing yields to new recent highs.
Market sentiment continues to be driven by the outlook for interest rates, the timing and depth of rate cuts, and rising geopolitical risks, which have helped push gold prices to record highs.
The Bank of England held rates at their 16-year high of 5.25% despite the fall in headline inflation, which dropped from 4% to 3.4%, its lowest reading since 2021.
US stocks powered to new all-time highs this week, despite the slightly firmer inflation print of 3.2%, with yields higher across the board.
The UK budget dominated the headlines as the chancellor attempted to balance fiscal responsibility against the upcoming election.
It has been a relatively quiet week as macro uncertainty leads to a lack of real conviction and month end dynamics drive market flow.
UK policymakers remain cautiously dovish, reinforcing market expectations of an easing cycle starting in August, and around 0.75% of cuts forecast this year.