Knowledge and Insight - Markets

The darkest hour for economic indicators is still approaching; then comes the dawn.

Rathbones’ co-chief investment officer, Edward Smith and head of equities, Sanjiv Tumkur provide an update on the market outlook. They discuss current thinking on the wider global economy and markets, in addition to some of the key developments to watch out for over the rest of the year.

Markets and economic data have been sending conflicting signals. Technology shares are being snapped up as new AI applications like Chat GPT burst onto the scene. But most of the rest of the global equity markets remain in the doldrums, and government bonds have had a drubbing. But there are plenty of reasons to be cheerful as we look to relax and enjoy the rest of the summer.

What to do when markets and data seem full of conflicting messages

A regional bank caught up in the March banking crisis has been forcibly sold by an American regulator. Hopefully this marks the end of the chapter.

A year of rapid-fire interest rate hikes by central banks is yet to be fully felt by the wider economy. Rathbones’ co-chief investment officer Ed Smith explains why that makes us cautious.

Stocks and bonds ended the month – and first quarter – nearing the top ends of the trading ranges in place since late last year. But there’s still much uncertainty about the inflation and growth outlook, particularly if energy prices start rising again.

But reality has yet to set in for equity valuations, especially in the US.

Strong gains for Europe’s banks last week were reversed by Friday’s close. With the fear bug spreading, can we be confident it won’t strike again?

A new deal for the Northern Irish border is imminent, bringing hope of greater clarity on Brexit for the UK. Meanwhile, the outlook for global inflation only gets foggier.

Markets were buoyed by fading American inflation, but they may be getting ahead of themselves. Meanwhile, the UK high street reports some rare good news.

One for the ages, 2022 was a whirlwind year that shook up economies and markets. What’s in store for 2023?