The infoshot to help kick-start your week
Last Week
- Investors are closely watching for any signals from Federal Reserve Chair Jerome Powell at the US central bank’s annual meeting in Jackson Hole, Wyoming, particularly regarding potential interest-rate cuts. While markets are largely anticipating a reduction in borrowing costs, Powell might keep specifics on timing vague when he speaks on Friday. Expectations are high for rate cuts at the Fed’s next meeting in September, but the central bank’s cautious approach leaves some uncertainty. In related news, Goldman Sachs has reduced its estimated likelihood of a US recession in the next year to 20%, down from 25%, citing positive trends in retail sales and jobless claims. Despite moderating inflation concerns, some investors are still quietly preparing for the possibility of a future uptick in prices.
- UK homebuyer activity has picked up following the Bank of England’s recent rate cut, the first since the pandemic began, according to property portal Rightmove. The number of prospective buyers contacting estate agents jumped by 19% compared to a year ago since the Bank’s August 1st decision, an increase from the 11% growth seen in July. In a separate report, data from job search site Adzuna showed that British businesses increased job postings in July for the first time this year, signalling resilience in the labour market. The number of vacancies rose by 1.1% to 862,043, while more people are also entering the job market. This makes it the most competitive hiring environment since May 2021, when the country was emerging from Covid-19 lockdowns.
- Oil prices have fallen for the fourth time in five sessions as traders monitor ongoing US-led diplomatic efforts to broker a cease-fire in the conflict between Israel and Iran-backed Hamas in Gaza. Brent crude dipped below $80 per barrel, while West Texas Intermediate hovered near $76. The decline is also driven by economic concerns in China, the world’s largest oil importer, where slowing growth and a shift toward greener transportation are weighing on fuel demand. Meanwhile, talks aimed at securing a cease-fire and hostage deal face obstacles, with Israel and Hamas exchanging blame as US officials arrive in Tel Aviv to push for progress.
Market Pulse
Coming Up
- EU CPI Data released, Tuesday 20th August 2024 at 10:00am
- UK PMI Data released, Thursday 22nd August 2024 at 9:30am
- US Fed Chair Powell Speech, Friday 23rd August 2024 at 3:00pm
- UK Bank of England Gov Bailey Speech, Friday 23rd August 2024 at 4:00pm and 8:00pm
Notice:
For professional advisers only, Copia does not provide financial advice, and the contents of this document should not be taken as such. 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
