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 119 | 21st November, 2022

UK COMMENTARY

  • The UK’s annual inflation rate hit a 41-year-high of 11.1% in October, according to the Office for National Statistics (ONS). This was even after help was provided to households by the introduction of the government’s energy price guarantee.
  • The UK government announced its budget proposal, known as the Autumn Statement, which will lead to £55 billion in tax rises and spending cuts to fill a massive funding gap.
  • A study by advisory firm Mazars reported UK restaurants were going bankrupt at a faster rate than during the COVID-19 crisis, owing to a mix of staff shortages, surging energy costs, and falling bookings. The study said closures had increased by 60%, with 1,567 insolvencies over 2021-22, up from 984 during 2020-21. This included 453 closures in the past three months, up from 395 in the previous quarter.
  • British consumer confidence is still at close to record-low levels in November, despite a small boost after the financial market turmoil triggered by September’s mini-budget faded. GfK’s monthly consumer confidence index, which dates back to 1974, rose from -47 in October to -44 in November, having struck an all-time low of -49 in September.
  • The ONS reported that sales volumes at shops across Britain shrunk by 2.4% over the last three months. October sales picked up by 0.6% after a 1.5% tumble in September, when trading was disrupted by Queen Elizabeth’s State Funeral.
  • The ONS also reported that UK average house prices increased 9.5% over the year to September 2022, down from 13.1% in August 2022. The annual percentage change fell partly because UK house prices rose sharply in September 2021, when people took advantage of temporarily reduced Stamp Duty rates during the pandemic.

NORTH AMERICA COMMENTARY

  • US wholesale inflation which measures the overall change in producer prices over time, rose 8% in October from a year ago, down from 8.4% in September, according to the Bureau of Labor Statistics. This was the fourth straight decline and the latest sign that inflation pressures in the US are easing. Month-on-month prices rose 0.2% compared to analyst expectations of a 0.4% increase. 
  • US existing home sales fell for a ninth consecutive month in October, according to the National Association of Realtors, as high home prices and mortgage rates continue to push home ownership out of reach for many. Home sales fell 5.9% to a seasonally-adjusted annual rate of 4.43mn, their slowest pace since the start of the pandemic. Home sales declined in all regions.

EUROPE COMMENTARY

  • The Euro area annual inflation rate climbed from 9.9% in September to 10.6% in October, according to statistics office Eurostat. The European energy crisis remains the biggest factor to the inflation spike, with prices 41.5% higher than a year ago.
  • S&P Global’s Purchasing Managers’ Index (PMI) survey data for Eurozone manufacturing fell to 46.4 in October, down two points and the weakest print since the lows of the COVID-19 recession. Sharply falling demand was the main drag, as inflation and uncertainty remains high.

ASIA COMMENTARY

  • Japanese gross domestic product (GDP) unexpectedly shrank by 0.3% in the third quarter of the year, according to figures from Japan’s Cabinet Office. The global slowdown hit Japanese businesses, while the weak yen drove up the cost of imports.

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