Blackfinch Spring VCT PLC provided a comprehensive weekly market update, covering global events in the UK, North America, Europe, and globally. In the UK, the Bank of England maintained interest rates at 5.25%, while UK manufacturing activity contracted due to supply chain disruptions. In North America, the US jobs market added 353,000 new jobs in January, with the unemployment rate at 3.7%. In Europe, Eurozone inflation ticked down to 2.8% in January, and the manufacturing sector showed signs of improvement. Globally, world food commodity prices dropped to their lowest level in almost three years, and the IMF raised its 2024 global growth forecast from 2.9% to 3.1%.
The Bank of England's decision to maintain interest rates at 5.25% was highlighted, with the Monetary Policy Committee members split on the decision. UK manufacturing activity contracted in January due to supply chain disruptions caused by the Red Sea crisis, impacting supply chains and contributing to rising costs. However, the Nationwide Building Society reported a 0.7% increase in average house prices in January.
In North America, the US jobs market added 353,000 new jobs in January, with the unemployment rate at 3.7%. However, the US Federal Reserve noted a strong increase in worker pay, which could impact inflation. Consumer sentiment and spending implications were also discussed.
Eurozone inflation ticked down to 2.8% in January, and the manufacturing sector showed signs of improvement, with a slower rate of decline. Germany saw inflation slow to its lowest level since mid-2021, and the Eurozone avoided falling into a technical recession despite economic contractions in Germany and France.
Globally, world food commodity prices dropped to their lowest level in almost three years, and the IMF raised its 2024 global growth forecast from 2.9% to 3.1%. The report also mentioned additional market update options available for clients, including live webinars presented by the investment team.
The International Monetary Fund's updated World Economic Outlook raised the global growth forecast, indicating a "soft landing" for the global economy. The report also highlighted the variety of additional market update options available for clients, including live webinars presented by the investment team.