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 132 | 27th February, 2023 

UK COMMENTARY

  • UK public sector borrowing was in surplus by £5.4bn in January, £7.1bn smaller than in January 2022, albeit larger than the £5bn forecast by the Office for Budget Responsibility (OBR).
  • The latest Purchasing Managers’ Index (PMI) readings showed the private sector returned to growth in February, with the ‘flash’ composite reading rising from 48.5 in January to 53.0, entering into expansion territory for the first time since July 2022. Manufacturing PMI remained marginally in contraction at 49.2, while services PMI climbed to 53.3.
  • Retail sales growth ticked up in the year to February according to the latest survey from the Confederation of British Industry (CBI). However, retailers remain cautious and expect a decline next month.
  • Figures from Rightmove showed UK house prices were largely unchanged in February, suggesting some buyer confidence in spite of current mortgage rates.

NORTH AMERICA COMMENTARY

  • Minutes from the latest meeting of the Federal Open Markets Committee (FOMC) suggested there would be no let-up in the Federal Reserve’s push to drive down inflation, with more interest rate hikes to come.
  • PMI data in the US unexpectedly rose in February, ending a seven-month run of declines. The composite reading moved into expansion at 50.2, up from 46.8 in January. The services sector showed the largest gain, rising from 46.8 to 50.5, while manufacturing PMI improved from 46.9 to 47.8, with both measures coming in ahead of expectation.

EUROPE COMMENTARY

  • February’s composite Eurozone PMI reading topped expectations, rising to 52.3 from 50.3. Services showed the greatest increase, rising in the key regions of France and Germany, however the manufacturing reading fell in both countries, falling below 50.0 in France, and still in contraction territory in Germany.
  • Fourth quarter gross domestic product (GDP) in Germany fell 0.4% compared to the third quarter, below estimates of a 0.2% decline.

ASIA COMMENTARY

  • The benchmark lending rate was left unchanged by the People’s Bank of China, in line with expectations.
  • Consumer prices in Japan rose 4.2% in January compared to a year earlier, pushed higher by energy bills and reaching levels not seen since 1981.
  • The incoming governor of the Bank of Japan, Kazuo Ueda, suggested he would maintain the country’s current loose monetary policy.

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