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 127 | 23rd January, 2023 

UK COMMENTARY

  • UK inflation dipped to a three-month low of 10.5% in the year to December 2022, according to the Office for National Statistics (ONS). Households continued to feel the impact as food and drink prices rose at the fastest pace since 1977.
  • The retail sector ended 2022 on a grim note according to the ONS. Sales volumes fell 1.0% month-on-month on an including fuel basis in December, while November's number was revised down to a 0.5% decline, from 0.4%. All four main sub-sectors reported flat or falling sales in December, though the large decline in total sales was almost entirely due to a 2.1% drop in sales in non-food stores.

NORTH AMERICA COMMENTARY

  • ISM Manufacturing survey data showed that US goods prices continued to decline in December, while ISM Services sector data pointed to cooling services inflation. Producer price index (PPI) inflation eased to its slowest rate since March 2021. As a result, inventory conditions improved as demand cooled and some businesses worked down their stockpiles. Inventories warrant attention as they could add volatility to gross domestic product (GDP) growth this year.
  • The Bureau of Labor Statistics reported that the US economy added 223k jobs in December, slower than the November increase but still above the pre-pandemic month-on-month average. Meanwhile, wage inflation slowed to 4.6% year-on-year from 4.8% in November.
  • Existing US home sales fell 1.5% in December to a seasonally-adjusted annual rate of 4.02mn, according to a report from the National Association of Realtors. Sales declined in all regions excluding the West, where they were flat. Median home prices declined 1.5% month-on-month, slowing the annual rate of price appreciation to 2.3%.

EUROPE COMMENTARY

  • Eurozone inflation was confirmed at 9.2% year-on-year in December, according to statistics office Eurostat. This was down from 10.1% in November. Lower energy inflation was the key driver while core and food prices went up on a monthly basis.
  • The final December consumer price index (CPI) prints for Italy and Germany confirmed that headline inflation eased across the region, brought down by falling energy inflation. However, at 11.6% and 9.6% year-on-year respectively, inflation remains elevated in both countries. Core inflation – which does not include food and energy costs – proved stickier and rose in December to 5.8% and 5.2%, respectively.

ASIA COMMENTARY

  • In Japan, growth in nominal goods exports slowed to 12% year-on-year in December, from 20% in November. This partly reflected a less favourable base effect, but was also due to production cuts in the auto industry owing to chip shortages.

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