One of the challenges with writing these is not so much finding something to write about, it’s that there is so much I could write about! I know what excites.
Read moreMonday Musings 18/10/2022
Monday Musings 18/10/2022
I wanted to see what was in Jeremy Hunt’s new mini budget (for goodness’s sake! Could any of us have imagined such a thing just a few weeks ago?) and how the markets would react. And it was good. Not all good – there were a few things that didn’t bring smiles to our faces – but largely good. And it seems to have achieved its intended purpose; namely to calm and stabilise the markets. The pound began to recover almost immediately, and the UK’s cost of borrowing has declined, with a reported £20bn in interest payments already saved. Interestingly, some have observed that the stabilising of the UK markets has had a positive impact on the global markets too.
Having said that we’re not out of the woods yet. Much still hangs on the coming October 31st statement. The global markets will want to be confident that Hunt has done his homework. Has he gone to enough detail in his planning to be confident that his strategies will work? Can he provide that detail to gain the confidence of the markets? We will all be watching with interest. My guess would be he will – I feel like he is very much a man gunning for the top job and will be doing everything he can to double down on the positive impact his actions have brought so far. He will want to look like the golden boy who saved the economy. I wonder if Truss has started sleeping with one eye open?
To show the impact of the new mini budget, we have put below the markets breakdown as of Sunday (Table 1) as we usually do, and also, as of this morning (Tuesday – Table 2).
So, to the markets,
Table 1 | 31.12.2021 | 16.10.2022 | % Change | % Change on week |
FTSE 100 | 7384 | 6858 | Down 7.12 | Down 1.89 |
Dow Jones | 36338 | 29634 | Down 18.44 | Up 1.15 |
Nasdaq | 15645 | 10321 | Down 34.03 | Down 3.11 |
S&P | 4766 | 3583 | Down 24.82 | Down 1.55 |
NIKKEI | 28791 | 27090 | Down 5.90 | Down 0.09 |
Hang Seng | 23398 | 16587 | Down 29.10 | Down 6.50 |
Shanghai | 3640 | 3071 | Down 15.63 | Up 3.29 |
CAC 40 | 7153 | 5931 | Down 17.08 | Up 1.11 |
DAX | 15885 | 12437 | Down 21.70 | Up 1.34 |
Table 2 | 31.12.2021 | 18.10.2022 | % Change | % Change on week |
FTSE 100 | 7384 | 6991 | Down 5.32 | Up 1.04 |
Dow Jones | 36338 | 30185 | Down 16.93 | Up 1.86 |
Nasdaq | 15645 | 10675 | Down 31.76 | Up 3.43 |
S&P | 4766 | 3677 | Down 22.84 | Up 2.65 |
NIKKEI | 28791 | 27156 | Down 5.67 | Up 1.42 |
Hang Seng | 23398 | 16914 | Down 27.71 | Up 1.82 |
Shanghai | 3640 | 3080 | Down 15.38 | Down 0.13 |
CAC 40 | 7153 | 6091 | Down 14.84 | Up 0.84 |
DAX | 15885 | 12800 | Down 19.42 | Up 1.20 |
Not all of its bleak out there. Sometimes we hear good things in the press. Ok, not often. But sometimes. For example, news came in the press recently that the.
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