The infoshot to help kick-start your week
- BoE chose to raise interest rates to 1.75%, a rise of 50 basis points, making it the largest single hike since 1995. According to forecasts, the UK is set to enter a recession for 5 consecutive quarters, with inflation set to hit 13.3% this winter.
- US Nonfarm Payrolls increased 528,000 in July, easily topping the Dow Jones estimate of 258,000, in a sign of strength for the jobs market. These results will increase the likelihood of another 75 basis point hike in September, as the risk of such actions tipping the economy into recession diminishes.
- Asia-Pacific shares trade higher on Friday as investors shake off China’s military drills following Pelosi’s visit. While markets appear unbothered by China’s drills, Japan’s Defence Minister Nobuo Kishi called the drills a ‘serious problem’, as missiles landed in Japan’s exclusive economic zone.
- US CPI (Jul YoY) released August 10th, forecasted to decrease 0.2%, from 9.1% in June.
- UK GDP (Q2 YoY) to be released August 12th, predicted to decrease 0.7% to 2.8%.
The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.Open document settingsOpen publish panel