Macro observations One of the most pertinent drivers last week was the surprisingly strong US jobs report. US rate hike expectations increased on the news with the probability of a September move rising, but a December hike more likely still. Markets still appear to be pricing in neither, however, as US and global monetary policies diverge like never before. So…

How low central bank rates boost equities We’re living in a new era of very low central bank rates, so we’d do well to understand how they help boost equities! At face value it’s pretty simple: the central bank lowers interest rates which encourages people and businesses to put money to work in the economy,…

A UK 100 Dividend Bonanza  The UK’s UK 100 has had a massive boost into the end of the week, having rallied by nearly 200pts since the Bank of England cut interest rates to record lows and boosted both QE and the funding for lending scheme. The index looks to now be consolidating ahead of…

5 Aug Telegraph Augustin Eden, of Accendo Markets, said: “A positive opening call for European equity markets comes after the Bank of England threw the kitchen sink at what is after all only a potential post-Brexit economic downturn. Even though it hasn’t happened yet, sentiment indicators are telling us it probably will.  Fitch has noted that the BoE’s…

Macro observations Markets pulling back a little on Monday following a disappointing UK Manufacturing PMI print that has fueled the UK’s Brexit-related growth concerns at a time when markets are increasingly unable to rely on central banks to keep the cogs greased. So far we’ve had notable inaction from the Bank of England, US Fed and Bank of…

I’ve one very good reason why Mark Carney, Governor of the Bank of England (BoE), shouldn’t cut UK interest rates next week. That’s not to say he shouldn’t do anything at all in terms of additional monetary stimulus. Intervention is very likely to be required in light of Brexit, and we’d be wise to get…