Providing you with a short summary of events from around the world. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Blackfinch Group
Monday Market Update

The ever-changing world we live in reinforces the importance
of regular up-to-date communication. This weekly news update from our
multi-asset portfolio managers provides you with a summary of global events
 for your reference and to share with clients.

Issue 126 | 16th January, 2023 

UK COMMENTARY

  • The UK economy expanded by 0.1% in November, according to the Office for National Statistics. The growth in gross domestic product (GDP) was spurred on by higher consumer spending in shops in the run-up to Christmas, while bars received a boost from the Qatar World Cup.
  • This growth was a slowdown when compared with 0.5% GDP growth in October, but still better than forecast, as analysts had predicted the economy would shrink by 0.2% in November.

NORTH AMERICA COMMENTARY

  • The annual rate of US inflation fell from 7.1% in November to 6.5% in December, according to the Bureau of Labor statistics. This was the sixth consecutive month of year-on-year declines.
  • Falling fuel prices were by far the largest contributor to the monthly decrease, falling 9.4% over the month, more than offsetting increases in shelter indexes, which rose 0.8% over the month and were 7.5% higher than a year ago.
  • Falling inflation has improved US consumer sentiment. The preliminary January reading of the University of Michigan's Consumer Sentiment Index rose to 64.6, compared with December’s 59.7. The index of current economic conditions rose sharply by 9.2 points to 68.6, while the expectations component increased 2.1 points to 62.0.

EUROPE COMMENTARY

  • The statistics body Eurostat reported that the Eurozone’s unemployment rate was unchanged at 6.5% in November, with the absolute number of people without jobs falling by 2,000 to 10.85m. 
  • Eurozone industrial production posted a 1% month-on-month gain in November. The increase, however, was not enough to offset the large 1.9% monthly drop in October, which was exacerbated by some one-off factors, including the French refineries strike and a public holiday in Italy.

ASIA COMMENTARY

  • Weakness in December's trade data reflected the combination of still-low global demand conditions and domestic challenges associated with COVID-19 outbreaks, including local labour supply disruptions and dismal consumer confidence.
  • Chinese exports collapsed 9.9% year-on-year in US dollar terms while imports fell 7.5%. Both were not as bad as markets were expecting, but still represented the weakest prints since H1 2020. Shipments to key developed market destinations continued to contract at a double-digit pace.
  • Japan's Consumer Price Index rose 3.8% in November, the fastest rate since 1991. Goods prices, including fuel, drove the increase but service inflation remains sluggish, climbing 0.7% year-on-year in contrast to other advanced economies.

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