Can markets continue to rally into year end?
Monthly highlights, October 2024
Interest rates are on the decline: that's one clear conclusion from market developments of recent weeks. In the US, the Federal Reserve cut its main interest rate by 0.5%, while Chinese authorities also cut borrowing costs in a bid to revive the economy. Although the Bank of England did not lower the Base Rate at its latest meeting, Governor Andrew Bailey has indicated that UK interest rates are likely to come down over the coming months.
The shift has boosted sentiment in markets, helping to shield them from significant uncertainties. These include next month’s US election, and the conflict in the Middle East, which may be entering a dangerous new phase one year after it started. Both situations present risks to this year’s rally in global equity markets and we will continue to monitor them closely. To hear our latest investment views, please join our next investment webinar on October 22nd.
We know that the UK’s Autumn Budget remains a concern for many clients. We share our latest thoughts below and will provide you with another update early next month. In the meantime, please get in touch if there are any issues you would like to discuss.
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Rate cuts in the US, China and Europe boost markets.
THIS MONTH'S HIGHLIGHTS
Given uncertainty about where the “neutral” rate of interest lies, we worry an aggressive rate cutting cycle could re-ignite the dying inflationary embers.
Global stock markets remain close to record highs, despite the escalating conflict in Middle East. How concerned should investors be?
领英推荐
The Prime Minister has warned of a “painful” Budget on 30th October. Our wealth planning specialists explain what changes could be in store, and the steps you may want to consider beforehand.
IN FOCUS
As the world races towards net zero, we discuss the strategies investors could use to decarbonise their portfolios.
These articles are issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.
This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.
All data contained within this document is sourced from Cazenove Capital unless otherwise stated.