Macro
UK
Thu Aug 22
New survey shows UK households are growing increasingly optimistic about their personal finance after the rate cut.
On Aug 1 BOE cut rates for the 1st time in over 4 years, starting a cautious easing cycle. So far this year the UK economy has outperformed all G7 peers, with growth of 0.7% in the first quarter and 0.6% in the second. In August, private sector companies reported their best growth in 4 months.
However, household confidence over the next year dropped as concerns over the rising tax for the public finance deficit after the new Labour government took over. But economists remained optimistic stating that with greater inflation stability, rate cuts, and political certainty after election, consumer confidence is gradually recovering.
Equities
Wed, Aug 07
European stocks have best day since November in broad rebound, as a global rally picked up momentum following Monday’s plunge.
Stoxx Europe 600 Index climbed 1.5% to 495.96 at the close in Paris, bouncing for a 2nd day. The benchmark slumped to a six-month low on Monday, caught up in a global rout that was sparked by US recession concerns and stretched valuations of big techs
Banking stocks advanced the most, Health Care shares lagged after drugmaker Novo Nordisk reported disappointing sales for its blockbuster weight-loss drug Wegovy.