• More refief for equity markets

    There was more respite for stocks yesterday which recovered some further ground from what was in any case a relatively modest sell-off recently on concerns about the coronavirus, though whether they are now out of the woods remains to be seen. Core bond yields nudged higher again as equities gained, with US 10-year yields closing up around 7bps at […]

  • Some respite for stocks

    There was some respite for stocks at the start of the week, with both European and US indices closing modestly higher yesterday, while bond yields in the core markets edged a little higher. Amidst this, the euro was little changed on the day against the dollar and trades this morning at around $1.1050, while the pound […]

  • Euro a touch firmer

    While equity markets remained under pressure on Friday and core bond yields continued to head south, somewhat surprisingly the euro gained ground against the dollar to close out the week trading at almost $1.11 (having started it at around $1.10). The Bank of England’s decision to keep interest rates unchanged helped sterling, which strengthened against both the single currency […]

  • BOE stays on hold

    In the event, yesterday’s eagerly awaited BOE monetary policy decision saw no change in UK interest rates with members voting 7-2 to stay on hold at 0.75%. The BOE put weight on the latest business and consumer surveys which point to a post-general election reduction in uncertainty and an improvement in confidence, although it did say that it would now be watching to see if this is translated into more […]

  • Bank of England in focus today

    Equity markets in Asia were under pressure overnight on the back of on-going concerns about the coronavirus, which is likely to spill over to European stocks this morning and contribute to a further decline in core bond yields (German 10-year yields are almost 10bps lower this week to date at circa -0.40%). All of this continues to support the dollar, which […]

  • Sterling slips a littie

    Sterling has drifted a little lower ahead of tomorrow’s Bank of England interest rate decision – it looks like it’s close to 50/50 regarding the chances of a rate cut – and is trading at just over 84.5p against the euro this morning and at $1.30 against the dollar. The latter continues to perform solidly and has edged up to […]

  • Equities sell off

    Both European and US stocks lost ground yesterday, the former falling by around 2.5% and the latter by circa 1.5%, as worries surrounding the coronavirus weighed on markets. The dollar continues to benefit in this environment  – it is trading at about $1.10 against the euro this morning (remember it ended 2019 at $1.12) – […]

  • Stocks under pressure

    Concerns about the coronavirus saw the dollar gain some ground against the euro last week and it is trading at around $1.1025 this morning (from circa $1.11 this time last week). Equity markets were under pressure and they are again at the start of this week, with Asian stocks a good deal lower overnight and European indices opening […]

  • Focus on PMIs today

    The focus for the market today will be on the January PMIs for the main economies but particularly for the UK, the outturn for which is seen as key in determining whether or not the Bank of England cuts interest rates at its next meeting on January 30th. This may be overdoing it – the BOE may already have decided it will lower rates judging by […]

  • Sterling gains further ground

    The pound has gained further against both the euro and the dollar, to trade at around 84.5p and north of $1.31 respectively, as the market pares back slightly its expectations for a Bank of England interest rate cut at the end of this month, though it still thinks it’s more likely than not that rates will be lowered by 25bps […]