The infoshot to help kick-start your week
The UK economy shrank between July and September, contracting by 0.2%, as the country heads into what could be the longest recession on record by the end of the year. Chancellor Jeremy Hunt stated that he would try to make the recession ‘shallower and quicker’ than predicted but warns that there are difficult decisions to be made. The country waits for his Autumn statement to be released this week.
Fed officials welcomed Thursday’s news showing that US inflation rose by less than expected last month, coming in at 0.2% below predictions. San Francisco Fed president Mary Daly stated however, that ‘One month of data does not a victory make’, suggesting that interest rate rises may still go ahead, albeit at a slower pace. While the report may mark a turnaround, inflation is still far ahead of the US’ target, and there is still a tough journey ahead.
The S&P 500 closed its best week since June following Thursday’s inflation report, as it raised hopes that the Fed will begin to slow its tightening campaign. In fact, the end of the week saw a sharp rise in all 3 major indices. The S&P rose 5.9%, The Dow Jones was up 4.1% and the Nasdaq Composite surged 8.1% on a weekly basis. The week marked a resumption of a comeback rally for the bear market, which began in mid-October.
- UK Consumer Price Index (YoY Oct) released November 16th, predicted to be 10.7%
- EU Consumer Price Index (YoY Oct) released November 17th, predicted to be 10.7%
- UK Autumn Statement released November 17th
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