The infoshot to help kick-start your week
- On Friday afternoon, Kwasi Kwarteng was removed from his position as chancellor, with Jeremy Hunt being appointed as his replacement. Mr Kwarteng’s downfall was catalysed by his mini-budget three weeks prior. The plan, which announced £45bn in unfunded tax cuts, among others, threw UK financial markets into chaos. Among the fallout was an unprecedented BoE intervention to stabilise the pensions market.
- US CPI came in at 8.2% YoY on Friday, higher than the 8.1% expected. As a result, Wall Street stocks fell, reversing the sharp rally on Thursday, after a pessimistic survey of inflation expectations renewed concerns regarding the Fed’s planned interest rate rises. The S&P 500 index fell 2.3 percent and the Nasdaq composite, more sensitive to interest rate expectations, fell 3.1%.
- UK PM Liz Truss performed major U-turns on tax cuts during her conference on Friday. The announcement of the plan to reverse her pledge of cancelling the 6% rise in corporation tax did little to placate markets and has increased uncertainty among traders over further short-term change of hearts. The fallout from the mini budget were substantial, and it is yet to be seen whether the U-turn can sustainably calm markets.
- UK Consumer Price Index (YoY Sep) data to be released on October 19th. Expected to increase to 10.0% from 9.9%.
- EU Consumer Price Index (YoY Sep) data to be released on October 19th. Expected to increase to 10.0% from 9.1%.
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