This week has been very much more of the same with most major markets waiting for something to happen. In the UK, news that inflation has come down a bit is good news but not enough to declare job done for the Bank of England. In the US, the job market remains healthy and doesn’t suggest a recession is imminent, although a closer look does reveal a few signs of weakness. In Europe, the European Central Bank was at pains to stress that it doesn’t intend to change course whatever the data, at least for now. Pretty much everyone accepts that a change is coming, although there is little agreement on what comes next. This week provided no new clues to when or what that might be.
Elsewhere, the reopening of the Chinese economy continues at pace. The sudden increase in global supply and the same pent up consumer demand we saw after our own reopening is set to reinvigorate a Chinese economy that was struggling with a deflating property bubble. As China is such a key part of the global economy its sudden revival could well be the catalyst for the anticipated change everywhere else.
For the following stories, please click on this link*
- UK – CPI eases slightly helped by falling petrol prices
- China – Investors hoping for return to growth as GDP lags in 2022
- US – Markets unsettled as jobs market remains tight
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