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Walker Crips' Market Commentary

Insights on the world of stock markets and finance

This weekly podcast from the team at Walker Crips Investment Management provides an in depth commentary on the macro economic factors driving global markets, whilst also focusing on individual stocks that are making head
Latest Episode11/22/2022

Markets broadly manage to hold onto momentous gains

Season 1, Ep. 57
In a relatively light week for economic data and company updates, markets broadly managed to hold onto the momentous gains of the previous week. Coming so soon after last week’s relatively benign US inflation data, the week got off to a good start with a deceleration in US producer price inflation, which should ultimately feed through into lower inflation in the prices of goods for consumers. What investors really want to know, however, is whether the more positive outlook for inflation will influence governors at the US Federal Reserve into slowing the pace of increases in interest rates. Despite an unusually large number of governors speaking at conferences and in interviews during the week, investors were left with the feeling that opinions are still divided between those who prioritise defeating inflation at any cost, and those who are becoming more cognisant of an economic slowdown...Stocks featured:Alibaba Group, Cisco Systems, Hasbro, Mattel, Siemens and Target Corp.To find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
11/22/2022

Markets broadly manage to hold onto momentous gains

Season 1, Ep. 57
In a relatively light week for economic data and company updates, markets broadly managed to hold onto the momentous gains of the previous week. Coming so soon after last week’s relatively benign US inflation data, the week got off to a good start with a deceleration in US producer price inflation, which should ultimately feed through into lower inflation in the prices of goods for consumers. What investors really want to know, however, is whether the more positive outlook for inflation will influence governors at the US Federal Reserve into slowing the pace of increases in interest rates. Despite an unusually large number of governors speaking at conferences and in interviews during the week, investors were left with the feeling that opinions are still divided between those who prioritise defeating inflation at any cost, and those who are becoming more cognisant of an economic slowdown...Stocks featured:Alibaba Group, Cisco Systems, Hasbro, Mattel, Siemens and Target Corp.To find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
11/15/2022

Relatively benign American inflation data triggers global market rally

Season 1, Ep. 56
Nearly all the price action in markets last week came in a burst of euphoric demand following the publication of relatively benign American inflation data. US inflation fell from 8.2% in September to 7.7% in October, with the details revealing that inflationary pressures were easing across the board: the pace of inflation decelerated in the property and service sectors between September and October, and there were outright declines in the cost of used cars, rent, clothing and household furnishings. One data-point does not constitute definitive evidence and, more broadly, current economic data confirms that a slowdown is underway but, nevertheless, this was enough to send markets into an epic rally. Expectations for interest rate rises in the US dropped like a stone, along with the safe-haven US dollar. US government bonds surged across the board, and five-year bonds enjoyed their biggest one-day gain in a decade. The S&P 500 stock market index had one of its best days since the start of the pandemic, rising by 5.5%. The technology-heavy Nasdaq index, which had been beaten down by the fear of rate rises, rocketed by over 7%. European stock markets surged in sympathy: the Euro Stoxx 50 index had gained over 3% by the end of the day and the UK-orientated FTSE 250 gained nearly 4%...Stocks featured:ASML Holding, Burberry, Disney, Hermes International, LVMH, Richemont and Taiwan Semiconductor Manufacturing Co.To find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
11/8/2022

Mixed interest rate messages from US Federal Reserve leave investors wondering

Season 1, Ep. 55
Monetary policy and economic data were in the driving seat last week, with both the US Federal Reserve and the Bank of England scheduled to announce monetary policy decisions. The Fed raised the possibility of a slowdown in the pace of interest rate rises, adding new language to its statement on monetary policy to the effect that it would consider the cumulative impact of rate rises on the economy when setting rates. This was hardly the “pivot” towards more dovish monetary policy that markets were hoping for, but it was enough to unleash a rally. Unfortunately, the rally lasted all of half an hour, by which time Fed Chairman Powell’s press conference had squelched any optimism, saying that rates were actually likely to go higher than expected, even if they went higher in smaller increments...Stocks featured:Airbnb, Apple, GSK and TeslaTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
11/1/2022

Could markets resilience to bad news signal the end of bear market?

Season 1, Ep. 54
Stock markets ran the gauntlet this week of some weak financial performance from the technology industry, as well as disappointing economic data, but without sustaining much damage. In fact, the resilience of markets to bad news raises the possibility that the recent bottom could mark the end of the current bear market. This hope is dependent on central banks softening the tone of their comments on interest rate rises, examples of which were in evidence twice during the week. The Bank of Canada increased rates by 0.5% rather than the 0.75% that markets had expected, and noted that past rate rises were beginning to affect household spending and housing markets. More importantly, the European Central Bank met expectations with a 0.75% rate rise but hinted that a slowdown in the pace of tightening is imminent with the comment that "substantial progress" has already been made towards tighter monetary policy.Stocks featured:Alphabet, Amazon, Apple, Caterpillar, Coca-Cola, Mastercard, McDonald’s, Meta Platforms, Microsoft, Unilever and VisaTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
10/18/2022

UK government's mini-budget reversal restores some calm to financial markets

Season 1, Ep. 52
It was a turbulent week for markets and British politics. On 14th October Kwasi Kwarteng was sacked as the Chancellor meaning he was the second shortest serving Chancellor in British history at 38 days. He was replaced by Jeremy Hunt who swiftly announced a reversal of the majority of the tax cuts previously outlined, helping to bring nominal yields down on government bonds and restore some calm to financial markets. Following the mini-budget on 23rd September, where the prospect of a large surge in government borrowing on the back of the announced spending increases and tax cuts, the UK markets had been extremely volatile. Nominal yields on government bonds surged with the 30 year gilt yield crossing 5%, the pound fell and equity markets had seen high volatility. After being down just over 2% during the past week markets rebounded on first the rumour and then confirmation of Kwarteng’s sacking to finish 17th October broadly flat.Stocks featured:ASML, Goldman Sachs, Hargreaves Lansdown, Johnson & Johnson and MoneysupermarketTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
10/11/2022

US imposes strictest regulations yet on sales of computer chips to China

Season 1, Ep. 51
Stock markets started the week brightly enough, with a two-day rally as good as any since the start of the pandemic. But it was not to last, as OPEC dealt a blow to investors outside the oil sector, and to consumers battling inflation, by opting to cut oil production by two million barrels a day. This was enough to trigger a rally of nearly 10% in the price of oil. The decision came despite frantic lobbying by US officials and a visit by President Biden to Saudi Arabia in July. Some commentators viewed this as a weaponisation of oil prices amidst an energy power struggle between America and Saudi Arabia, and the US government described Saudi Arabia as having chosen to align itself with Russian interests.Stocks featured:Advanced Micro Devices, Imperial Brands, Intel Corp, Levi Strauss & Co and Samsung ElectronicsTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.