The prospect of higher interest rates absorbed a sizeable proportion of investors’ attention in the US during May. The minutes from the Federal Open Market Committee’s (FOMC’s) April meeting fuelled speculation that policymakers might move to tighten interest rates as early as June, as long as economic data – domestic and external – remain supportive. … Continue reading “Will US rates rise in June?”
As the referendum over the UK’s future membership of the European Union (EU) drew closer, credit ratings agency Fitch warned that, if the UK were to leave the EU, a Brexit would “weigh on the economies of other EU countries and increase political risks”. In particular, a Brexit would cut the UK’s contribution to the … Continue reading “Prospect of higher US rates drives down Treasury bond yield”
Speculation over the EU referendum continued to absorb the limelight during May, and investors and companies became increasingly nervous about the potential impact of a Brexit. The FTSE 100 Index fell by 0.2%, while the FTSE Small Cap Index climbed by 0.2%; meanwhile, the FTSE 250 Index posted a monthly gain of 2.3%. The relatively … Continue reading “Weak sterling undermined UK dividends in Q1”
In the UK, May was dominated by discussion over the impending referendum on the UK’s membership of the European Union (EU), which is scheduled to take place on 23 June . During the month, the tenor of the debate became progressively irritable, as theorising and argument over the economic impact of a Brexit became increasingly … Continue reading “May is dominated by Brexit debate”
As the debate surrounding the UK’s future membership of the European Union (EU) intensified, gilt prices rose during May and yields fell. The yield on the benchmark ten-year UK gilt ended May at 1.56% , compared with 1.73% at the end of April. Meanwhile, the shorter-dated UK gilt yield fell over the month from 0.52% … Continue reading “Gilt yields fall in May”
Having contracted by 0.4% during the final quarter of 2015, Japan’s economy expanded more strongly than expected during the first the months of 2016, posting quarterly growth of 0.4% and annualised growth of 1.7%. Despite weakness in export activity and public investment, economic growth received an overall boost from an increase in government spending. The … Continue reading “Better-than-expected economic growth in Japan”
As June’s referendum on the UK’s future membership of the European Union (EU) drew closer, the tone of the Brexit debate became increasingly ill-tempered in May. During the month, various influential organisations – including the Bank of England (BoE), the International Monetary Fund (IMF) and the Confederation of British Industry (CBI) – contributed to the … Continue reading “Brexit debate and US monetary policy dominates in May”
Thanks for visiting the Market Briefings blog – we’ll be adding analysis, views and commentary from the investment world soon. Watch this space.