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 113 | 10th October, 2022

UK COMMENTARY

  • The Bank of England (BoE) purchased £786mn of long-dated government bonds (gilts) to avoid further financial turmoil following the mini-budget. Additional measures were also announced, increasing the maximum amount of gilts the BoE can buy each day from £5bn to £10bn.
  • The Office for National Statistics (ONS) reported that 5,629 companies collapsed across England and Wales in the second quarter of 2022, the most since the third quarter of 2009. Persistently high energy prices, difficulties in meeting debt obligations, rising costs of raw materials, and supply chain disruption all contributed to the increase.
  • Construction firms made up 20% of all the insolvencies, followed by the wholesale and retail trade industries at 14%.
  • According to data supplier Moneyfacts, the average new two-year fixed rate mortgage in the UK – which was 4.74% on the day of the mini-budget – climbed to 6.16%, having started last week at 5.75%.
  • The closely-watched S&P Global/CIPS UK Composite Purchasing Managers’ Index (PMI) fell to 49.1 in September, down from 49.6 in August, and further below the 50-point mark representing a contraction in output activity.

NORTH AMERICA COMMENTARY

  • The US Bureau of Labor Statistics reported that September’s non-farm payrolls data, the closely-watched measure of employment in America, increased by 263,000 in September. This moved the official unemployment rate in the US from 3.7% in August to 3.5%.
  • The annual rate of US consumer credit increased from 7.8% in August to 8.1% in September, a $32.2bn rise and above expectations for an increase of $25.0bn. This acceleration was largely due to faster growth in revolving credit such as credit cards.

EUROPE COMMENTARY

  • Germany Federal Statistics Office reported that industrial production fell by 0.8% month-on-month in August, below consensus expectations of a 0.5% fall. The decline surprised analysts given Germany’s healthy industrial turnover report published last week.

  • The composite PMI for the Eurozone fell to 48.1 in September, down 0.1 points from the flash mid-month estimate and 0.8 points lower than in August, as both industrial and services activity weakened.

  • The services PMI fell to 48.8 in September, 1 point down from August and the lowest level since February 2021. The announcement confirmed that the services sector has continued to slow significantly as consumer spending deteriorates amid a record squeeze of incomes after accounting for inflation.

GLOBAL COMMENTARY

  • OPEC+ agreed to cut its collective output limit by two million barrels of oil per day, as the group of oil-producing nations seeks to halt the slide in oil prices caused by the weakening global economy.

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