The latest updates and articles from Arbuthnot Latham
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.
A mixed set of data for the UK this week, with inflation steady at a lower than expected 4%, whilst the jobs market remains surprisingly resilient, particularly pay growth, which increased by 6.2% excluding bonuses.
A relatively quiet week as the market continues to digest the recent central bank meetings and the implications for monetary policy.
The Bank of England kept policy on hold with a 6-2-1 split vote, and revised their forecasts for growth marginally higher, but said inflation risks remain to the upside.
UK data this week showed the economy remains relatively resilient given the challenges, with the market scaling back rate cut expectations.
Mixed UK data this week with headline inflation unexpectedly ticking up to 4.0%, whilst average earnings growth slowed to 6.5%.
Headline US inflation printed slightly higher than expected at 3.4%, dampening the prospect of an early rate cut by the Fed and pushing yields higher.
Markets begin the year with a risk-off tone as increasing geopolitical tensions and the rising threat of conflict spreading in the Middle East weigh on global sentiment.