Paul Doyle, Head of Large Cap European Equities, takes us through the key takeaways.
We have seen a softening in market momentum led by US equities and based around two factors. Firstly, there are reduced expectations for an interest rate cut in the aftermath of the October’s Federal Reserve (Fed) meeting.
Discussing the case for emerging market equities – including a weaker US dollar – and the potential benefits of adopting an active approach.
Resilient growth and rising markets mask underlying structural tensions – the risks of a misstep are accumulating. We assess the balance for investors.
This week we focus on the diverging chances of a rate cut in December from the Bank of England (BoE) and the Federal Reserve (Fed).
We maintain a constructive outlook for equities, with a broadening of opportunities for selective investment, backed by disciplined diversification.
The Chanceller’s job of balancing UK finances hasn’t been helped by gilts. Since the election in July 2024, borrowing costs have been higher than the government would like. But one question still gets too little scrutiny: to what degree is the BoE’s QT programme responsible?
Chancellor Rachel Reeves achieved her budgetary goals: – the OBR is happy, markets are calm, and Labour backbenchers are content. But is that good enough?
The region has exited post-Covid stagflation, with inflation falling and interest rates easing, so economic performance has turned round. America, by contrast, faces stagflation
The US government’s proposal to impose tariffs on pharmaceutical imports has ignited a complex debate, intertwining economic, healthcare, and geopolitical considerations. While the initiative aims to bolster domestic manufacturing and reduce reliance on foreign supply chains, it also raises concerns about drug affordability and availability, and has broader implications for the healthcare system.
We don’t pretend to have all the answers on China and the US, and we reserve the right to change our minds – especially as Donald Trump changes his. Amid such market volatility we are not making bold macro calls, instead our focus is on thoughtful, quality-led stock selection.
Fundamental backdrop remains solid – many companies are performing well and first quarter earnings were healthy. Shareholder interests remain to the fore with buybacks tripled year-on-year in April. Merger and acquisition activity has been widespread.
We cannot ignore the dominant themes impacting markets across the world, but a resilient and supported European marketplace is well placed to prosper in these challenging times
As investors navigate a slower growth, policy-fragmented environment, AI stands out as a long-term theme with the potential to deliver durable growth and broad-based opportunity across the value chain
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