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 19, 2024

Week ending 19/04/24 – Q1 Review with Scott Evans

For this week's Market Call Gareth and Jeremy are joined again by Scott Evans of the London Business School and the Deutsche Numis Equity Indices. Scott talks about market performance in Q1 2024. Where have markets come from, how have they performed in Q1, and where are they going? Bond yields have risen, inflation is sticky, and rates are higher for longer. Equities have had a good quarter, albeit the Magnificent Seven have not been quite so magnificent. The UK, by comparison, has been lacklustre. Gold has been the Q1 showstopper, and the main buyer seems to have been China's central bank, the POBC. Are they about to devalue the Red Cabbage or launch a military campaign?

In Q1, small caps underperformed large caps in Q1 in UK and US. The UK IPO market remains moribund. There have been more deaths than births in the UK market YTD. Is the UK stock market just a dumpster fire, or can it recover? Gareth is hopeful for a recovery.

Jeremy highlights the Middle East conflict, its limited impact on financial markets, and what to look for going forward. The big news is UK inflation, but he remains sceptical that the UK will cut rates ahead of the Fed.

Gareth discusses the week's company news, highlighting the Severfield results with a strong order book and a share buyback.

In next week's news, Jeremy highlights US PCE inflation data and the Bank of Japan's interest rate decision.

Brought to you 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.