Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

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May 28, 2024

US rates higher for longer, for longer

Macro

USD/DXY has weakened, and most energy and commodity prices have risen while bond yields have also continued to rise. In particular, Japan’s 10-year JGB yields continue to rise about the 1% benchmark they broke last week. 

In a quiet week for macro news, the most consequential data releases will likely be US GDP (QoQ slowdown from 3.6% to 1.6%) and US PCE (broadly unchanged for April over March at 2.3%). 

Expect headlines of US rates higher for longer or even stagflation.

UK Companies

Vic Plumbing, the online plumbing supplier, reported that LFL revenue in April and early May 2024 has been in line with H1 2024 trends, with order volume growth offset by lower AOVs. It expects further market share gains from the acquisition of Victoria Plum, albeit tempered by a continuation of mixed recent trading. EBITDA in FY 2024 is expected to be broadly in line with current consensus. 

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