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 129 | 6th February, 2023 

UK COMMENTARY

  • The Bank of England increased interest rates from 3.5% to 4.0% and noted that the inflationary impact of higher than expected wage rises was the main driver for the upward move.
  • UK car sales accelerated in January, ignoring recession concerns and inflation pressures on household incomes. New car registrations increased 14% year-on-year, according to the Society of Motor Manufacturers and Traders.
  • The pay award increases of British employers were on course to hit a median of 6% in January, the highest reading in more than 30 years. This was based on 15 deals from major employers in January recorded by XpertHR.
  • The S&P Global/CIPS Purchasing Managers Index (PMI) survey for the UK’s services sector fell from 49.9 in December to 48.7 in January, as worker shortages, strikes and higher interest rates all affected activity.
  • PMI survey data for the manufacturing sector contracted in January for the sixth month in a row, with output, new orders and employment all contracting further. The seasonally-adjusted PMI reading for January was 47 points, an improvement on December’s low of 45.3, but below the 50 mark that signifies an expansion.

NORTH AMERICA COMMENTARY

  • The US Federal Reserve (Fed) raised interest rates by 0.25%, moving to a target range of 4.5%-4.75%, the highest since October 2007.
  • The US Labor Department announced that 517,000 new jobs were added in January, a huge surge for the jobs market, despite Fed attempts to curb inflation with higher interest rates. The unemployment rate held relatively steady at 3.4%, a 0.1% decrease from December.
  • The S&P Global US manufacturing PMI posted 46.9 in January, up from 46.2 in December and broadly in line with the earlier released ‘flash’ estimate of 46.8.
  • The most recent ADP jobs report showed private companies hired just 106,000 new workers in January, far fewer than expected, and down from an upwardly revised 253,000 in December.

EUROPE COMMENTARY

  • The European Central Bank (ECB) echoed the Bank of England by raising interest rates by 50 basis points, moving the official rate to 3.0%. The ECB also pledged to “stay the course in raising interest rates significantly at a steady pace”.
  • Eurozone inflation dropped to 8.5% in January, a downward move from 9.2% in December, according to a flash estimate from Eurostat.
  • S&P Global reported its final Eurozone Composite Output Index rose to 50.3 in January, up from December’s 49.3 and slightly above the preliminary reading. This was the first time since June that the index moved above 50 points, indicating an increase in activity.
  • Eurozone manufacturing PMI for January increased from 47.8 in December to 48.8 in January -  a five-month high – as cost pressures faded. 

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