The infoshot to help kick-start your week
Last Week
- The Bank of England raised interest rates by 25 basis points on Thursday to push rates to a 15-year-high of 5.25 per cent. The 0.25 per cent rate rise was widely expected by economists after inflation fell to a 15-month low of 7.9 per cent in June. Despite this, Bank of England Governor, Andrew Bailey, warned that high interest rates are likely to remain as the bank tries to push inflation back down to its 2 per cent target.
- US jobs growth slowed in July with 187,000 new jobs added in the month, compared to the 200,000 forecasted. This has added to optimism that the Fed is on track to bring a strong labour market and inflation under control without driving the economy into a recession.
- Fitch Ratings downgraded the US Government debt rating from AAA to a lower AA+ on Tuesday. The rating agency noted the country has a large and growing government debt burden and had suffered an ‘erosion of governance’ in the last few years. A couple of months ago, the US narrowly avoided a default (insufficient funds to make interest payments) after a last-minute deal raised the amount the US Government was allowed to borrow. However, Fitch warned that ‘increased political partisanship’ may prevent future resolutions being found.
Market Pulse
Coming Up
- US CPI July data released, August 10th, 1:30pm
- US Initial Jobless Claims data released, August 10th, 1:30pm
- UK Q2 GDP data released, August 11th, 7:00am.
Notice:
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
