The Market Call

The Market Call gives a periodic summary of major macro events, market themes and selected UK company-specific news.

<< Back to The Market Call archive

April 12, 2024

Week ending 12/04/2024 – Sticky US inflation, The Prospect of No-Landing & UK Equities Just Carry On

Gareth and Jeremy discuss the week in markets. US inflation is proving sticky, and it is increasingly difficult to justify cutting rates on economic grounds. The question is whether the BoE or ECB would cut ahead of the Fed. China is exporting deflation. In the UK, GDP grew more than expected in February, and the January figure was revised upwards. In UK equities, there is heightened debate and concern about whether the UK market is fit for purpose, with Shell making noises about relisting in the US. However, UK PLCs continue to carry on, retiring equity and receiving bid approaches. (This week saw an offer for Lok'n'stor and an approach for Centaur Media). However, the UK market issues are more cyclical than structural and can improve quickly on the return of liquidity. Next week's macro highlight will be the UK inflation data, with expectations for a month-on-month fall from 3.4% annualised to 3.1%. A UK set-up with rising GDP, falling inflation, and rate cuts should be positive for UK equities. Let's see.       

Made possible by Progressive Equity

This communication is provided for information purposes only, and is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. Investors should seek advice from an Independent Financial Adviser or regulated stockbroker before making any investment decisions. Progressive Equity Research Ltd (“PERL”) does not make investment recommendations.

Opinions contained in this communication represent those of PERL and/or our affiliates at the time of publication and PERL does not undertake to provide updates to any opinions or views expressed. PERL does not hold any positions in the securities mentioned in this communication, however, PERL’s directors, officers, employees, contractors and affiliates may hold a position,  and/or may perform services or solicit business from, any of the companies or related securities mentioned.

Any prices quoted in our research are as at the previous day’s close.