James Sharp & Co

In this week's Stock News Highlights... UK inflation increased slightly to 2.6% in November, highlighting the Bank of England's challenge as it struggles with persistent price pressures and a stagnating economy. The Bank of England kept interest rates on hold at 4.75% at its latest meeting as it seeks to contend with both stubborn inflation and lacklustre growth. In the commodity markets, Brent crude futures traded around $72 per barrel on Friday and are set for a weekly fall, after the US Federal Reserve signalled it would slow the pace of interest rate cuts in 2025, a move that could dampen economic growth, reduce fuel demand and strengthen the dollar. Federal Reserve officials' projections for rates in 2025 pointed to fewer cuts than previously forecast, underscoring their concern with lingering inflation. The goal of the Federal Reserve is to apply enough pressure on consumer demand and business activity to push inflation back to the 2% target without harming the jobs market or the economy more broadly. Federal Reserve Chair, Jerome Powell noted that officials had begun to include assumptions about Trump's planned policies in their forecasts. Read more https://lnkd.in/ez6e3pZP #ftse100 #wealthmanagement #stocknews

In this week's Stock News Highlights... The UK economy unexpectedly shrank by 0.1% in October, according to figures from the Office for National Statistics published today. The UK economy has grown in just one of the five months to October and growth is now 0.1% lower than before the Labour government came into power. However, growth is expected to accelerate to 1.7% in 2025. This is weaker than the 2.4% expansion forecast for the US but stronger than the 1.3% growth expected in the Eurozone. Hiring has fallen more sharply in the UK than in other major economies over the past year, as worries over weak growth and rising wage bills lead some businesses to cut headcount. In the commodity markets, Brent crude futures traded around $74 per barrel on Friday and are set to end the week higher, as investors focused on a forecast of ample supply, whilst expectations of higher demand next year from Chinese stimulus measures and expectations of another Federal Reserve interest rate cut next week, lifted sentiment. US equity futures rose on Friday as results from the semiconductor sector boosted sentiment. US Treasury Secretary, Janet Yellen said this week that the sweeping tariffs proposed by Donald Trump could "derail" progress on taming inflation. She argued that tariffs could have an adverse impact on the competitiveness of some sectors of the US economy and could significantly raise costs to households. Read more: https://lnkd.in/eqiQXRCQ #ftse100 #wealthmanagement #stocknews

UK house prices rose by 3.7% year-on-year in November, up from 2.4% recorded the previous month and marking the fastest rate of annual growth since November 2022, according to lender, Nationwide. Retail sales in the UK fell by 3.3% year-on-year in November, compared with growth of 2.6% in November 2023, according to data released by the British Retail Consortium. UK construction activity picked up in November, with the S&P Global UK Construction PMI rising to 55.2, up from 54.3 in October and beating market expectations. In the commodity markets, with weak demand in focus, the OPEC+ group postponed planned supply increases and extended deep output cuts until the end of 2026. Gold traded around $2,640 an ounce on Friday and is set for a weekly fall, after Federal Reserve Chair, Jerome Powell said on Wednesday that the US economy is stronger than expected and suggested a more cautious stance towards interest rate cuts. The Organisation for Economic Co-operation and Development has warned central banks against cutting interest rates too fast, flagging the threat posed by persistent inflation in the price of services. The Paris based organisation said that the world economy was showing 'remarkable resilience', as it welcomed a continued retreat in overall price pressures following the severest bout of inflation for a generation. Read more: https://lnkd.in/g782KH9q #ftse100 #wealthmanagement #stocknews

In this week's Stock News Highlights... UK markets pulled back this week, with the FTSE 100 Index falling by 0.4% to trade at 8,265 points at the time of writing. Bank of England Deputy Governor, Clare Lombardelli warned that the UK cannot yet declare victory over inflation. In the commodity markets, Brent crude futures traded around $72 per barrel on Friday and are set for a weekly fall, as tensions in the Middle East eased briefly, with a ceasefire between Israel and Hezbollah. US equity futures rose on Friday as the market prepared to reopen for a shortened trading session with most investors still on holiday for Thanksgiving. Minutes from the Federal Reserve’s November meeting suggest that the US central bank officials no longer see an urgent need to rapidly reach a 'neutral' rates level that does not hamper growth, following the bumper 0.5% cut in September. Federal Reserve Chair, Jerome Powell said earlier this month that a solid US economy meant the central bank did not need to be in a hurry to lower rates. Donald Trump proposed a 25% tariff on all imports from Mexico and Canada this week, accusing the US’s closest neighbours of failing to tackle illegal immigration and drug trafficking. Trump’s proposals also included an extra 10% levy on Chinese goods. His threats hit global markets and sent shockwaves through US trading partners. Read more https://lnkd.in/etssrABd hashtag#ftse100 hashtag#wealthmanagement hashtag#stocknews

The FTSE 100 is set to end the week higher, with oil and pharmaceutical stocks rebounding after a tough previous week. This recovery contrasts with growing concerns in European markets over the escalating Russia/Ukraine conflict. In the UK, government borrowing exceeded expectations, reaching £17.4bn in October, the second-highest since 1993, while inflation jumped to 2.3%. Despite this, Chancellor Rachel Reeves downplays the need for higher taxes. In commodity markets, gold has surged nearly 5% this week, while Brent Crude is on track for its best performance in two months, though concerns over global demand persist. In the US, stock markets remain strong, led by a 1.56% gain in the Nasdaq. Unemployment claims fell, signalling resilience in the labour market despite tight monetary policy. China has also expressed willingness for trade dialogue with the US under the Trump administration. Read more: https://lnkd.in/dUGV-CVH #ftse100 #wealthmanagement #stocknews

In this week's Stock News Highlights... This week saw UK markets pull back, with the FTSE 100 Index falling by 0.7% to 8,065 points. The UK economy grew just 0.1% in Q3, well below expectations of 0.2%, highlighting challenges for the Labour government. Services, which make up 80% of the economy, barely grew, while construction saw a more substantial rise. The private sector saw 4.8% annual pay growth, in line with expectations. Public sector wages were slightly higher at 4.7%. Unemployment rose to 4.3%, and job vacancies fell, signaling potential headwinds for the UK’s labour market. Meanwhile, the Bank of England is expected to continue easing interest rates slowly. In commodities, Brent crude fell due to oversupply concerns and demand uncertainty, while gold prices dropped under the pressure of a strong dollar. In the US, equity markets showed signs of weakness amid rising inflation data, while the Federal Reserve faces challenges in navigating economic growth and inflation. Read more: https://lnkd.in/eVKFJgyz #ftse100 #wealthmanagement #stocknews

In this week's Stock News Highlights... The UK stock market saw significant movements this week with a combination of the Central Bank's decision to lower interest rates and initial uncertainty around the outcome of the US election. The Bank of England’s decision to lower interest rates, cutting them by 0.25% should help support the slowing UK economy. However, this rate cut was met with investor uncertainty due to the recent budget announcement, which included higher government borrowing and spending, raising concerns about future fiscal stability. The clear outcome of the US Presidential election paired with a US interest rate cut caused a positive reaction in the US markets with both the S&P 500 (+4.4%) and Nasdaq (6.36%) higher on the week. Read more: https://lnkd.in/e3mS4Ty9 #ftse100 #wealthmanagement #stocknews

The FTSE 100 faced volatility this week, dropping 1.22% to around 8,150 points. UK Chancellor Rachel Reeves’ Autumn Budget announcement on Wednesday introduced new fiscal plans with £40 billion in tax increases affecting inheritance tax (IHT), capital gains, and national insurance. This autumn’s budget has not sparked the market turmoil seen during Liz Truss’ 2022 'mini-budget'. which led to a sharp sell-off in bonds and a drop in the Pound. While gilt yields have edged higher this week, the steadier market environment and stronger Pound have prevented a repeat any significant market instability. Annual spending will rise by £70 billion; this may compromise the Bank of England’s ability to cut rates, leading to higher for longer borrowing costs. Investors in UK gilts will require higher rates of return given the additional fiscal risks faced by the UK because of the additional spending. Brent crude rebounded to nearly $75 a barrel, bolstered by concerns over the potential Middle Eastern conflict and signs of economic recovery in China, which drives demand. US markets show resilience, with futures for the Dow, NASDAQ and S&P 500 all slightly up as of Friday. As the presidential election nears, candidates Donald Trump and Kamala Harris present contrasting economic approaches. Trump focuses on tariffs and ‘America first’ policies, while Harris emphasises small and medium-sized business support. Read more https://lnkd.in/eFp6QQzj

UK economic growth will accelerate this year and through into 2025, as falling inflation and interest rates strengthen domestic demand, according to the International Monetary Fund. The UK economy will grow by 1.1% this year, the third-strongest forecast among the G7 group of advanced economies, the IMF said in its latest World Economic Outlook report. Bank of England Governor, Andrew Bailey said this week that inflation is fading more rapidly than central bankers expected, but the UK needs to see a continued retreat in services price growth from current levels. In the commodity markets, Brent crude futures traded around $75 per barrel on Friday and are set for a weekly rise, as the Middle East conflict and reports of North Korean troops ready to help Russia in Ukraine kept investors on edge ahead of the US presidential election. Gold prices traded around $2,740 an ounce on Friday, breaking further records this week. US equity futures were little changed on Friday, after the major averages ended mixed in the previous session. The International Monetary Fund warned that greater global protectionism will endanger the world's growth outlook, as a possible Donald Trump victory in next month's US election raises the prospect of sharp tariff increase. The US Dollar rallied to its strongest level since August this week, boosted by a recent string of economic data and investor bets that Donald Trump's chance of winning next month's presidential election is on the rise. Read more: https://lnkd.in/e_GhhpBZ #ftse100 #wealthmanagement #stocknews

UK markets were positive this week with the FTSE 100 Index rising by 1.5% to trade at 8,370 points. UK consumer price inflation fell more than expected to a three-year low of 1.7% in September, prompting the Pound to fall and investors to increase bets on further interest rate cuts from the Bank of England this year. Business surveys suggest many employers have put hiring on hold ahead of this month’s Budget as they await more certainty over government policy on tax and spending. British retail sales grew unexpectedly for the third month in a row in September. In the commodity markets, Brent crude futures traded around $74 per barrel on Friday and are set for a weekly fall, after OPEC and the International Energy agency cut their forecasts for global oil demand in 2024 and 2025. Gold prices traded around $2,670 an ounce on Friday hitting a record high this week as uncertainty surrounding the US presidential elections and the war in the Middle East prompted investors to seek out the safe-haven asset, while an easing monetary policy environment kept prices elevated. US equity futures were positive on Friday as US economic data pointed to a strengthening economy, which boosted the Dollar and treasury yields, whilst investors still see a further Federal Reserve rate cut in November. Spending and the overall US economy are being underpinned by solid income growth, ample savings as well as strong household balance sheets. Although the labour market momentum has slowed, layoffs remain historically low, supporting wage gains. Read more https://lnkd.in/dN7B9A63 #ftse100 #wealthmanagement #stocknews