Markets look towards interest rate cuts

This week markets have taken the opportunity to catch their breath. Investors are looking for the inflection point, where it becomes clear that the next step for central banks is to begin cutting rates. Central bankers have naturally spent this week trying to calm expectations that the next move is a step down and most have been sticking to the higher-for-longer scenario. The tension between these two positions means markets remain uncertain and continue to be driven by each day’s news flow.

Elsewhere, the lack of growth in today’s GDP numbers is not great but focussing on each piece of economic data is unlikely to provide much clarity. With economic news remaining mixed, each release is as likely to reinforce existing ideas as it is to provide fresh insight. Some will see this as proof the UK remains resilient, while others will see the steady slide to recession. Markets are likely to remain volatile until a clear picture appears. Meanwhile, corporate news was dominated by the collapse of WeWork, however, as always there were pockets of good news.

For the following stories, please click on this link*

  • UK: Gilts continue to rally as markets look to rate cuts
  • Equities: High Street retailers shrug off tough trading conditions
  • Property: Steady progress for IWG as WeWork declared bankrupt

(*Please note, The contents of this e-shot been prepared for general information only. It does not contain all of the information which an investor may require in order to make an investment decision. If you are unsure whether this is a suitable investment you should speak to your financial adviser. This information is not guaranteed to be correct, complete, or accurate. FE Research is a division of Financial Express Investments Ltd, registration number 03110696, which is authorised and regulated by the Financial Conduct Authority (FRN 209967). For our full disclaimer please visit Data Sourced from FE Analytics, and Bloomberg Finance LP.)

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