0203 697 0560
support@capitalfinancialmarkets.co.uk

A slowly improving picture for the UK?

by | Apr 12, 2024 | News | 0 comments

A slowly improving picture for the UK?

After a mixed start to the year in January, we experienced a marked improvement in Global markets in February and March. With most of the activity in the US, Japan and the rest of Asia all showing strong gains. However, European stocks were muted, and the UK market continued to lag.

 

UK shares…

UK shares suffered in February, as data confirmed that the economy fell into a technical recession in the second half of 2023. However, the most recent data is suggesting that we have turned a corner in 2024. With a reduction in the maximum price that energy suppliers can charge for a unit of energy which should support falling headline inflation.

The consensus now is that headline inflation will fall to just below 2% and core inflation to around 2.6% by the end of 2024.

 

In the US…

In the US there is a different situation, despite the central banks best efforts to cool the US economy by keeping interest rates elevated, the economy remains resilient. With the full years economic growth forecast being revised up, which could mean there may not be a rate cut at all in 2024. The Federal Reserve at the March meeting left its main interest target unchanged in a range of 5.25%-5.5%. US shares led the market in the first quarter, aided in part by strong momentum trades and the fact that the outperforming Magnificent Seven are all based in the country.

 

Looking Ahead

After a troubled couple of years, with the UK economy falling into a technical recession, the economic picture is now slowly improving. With unemployment and growth broadly pointing to a “Soft Landing”, meaning that economies could emerge from a high inflation period with just a shallow recession.

UK Equities have seen ownership decline, but there is a growing perception that a change in the UK economic environment could bring about a reversal of fortune. A raft of economic data is showing that things are turning around, with inflation falling, robust wage growth and tax cuts. all feeding through to higher levels of consumer confidence. The feeling now seems to be that we will see interest rate cuts later this year as inflation falls to around the target level of 2%. UK shares are still considered cheap compared to other markets at the current time, but that could change.

 

If you would like to discuss your current investments or future plans we would be happy to schedule a call – Contact details for the CFM team are here and my contact details are:
E: stephen.lovelock@capitalfinancialmarkets.co.uk
T: 0203 6970561.

Stephen Lovelock, April 2024

Emma Tuckett

Investment Manager

Well-respected Investment Manager, Emma Tuckett, has joined CFM following a successful career at Killik & Co.

After nearly a decade working in Trading and Investments, Emma has worked with clients from a wide range of backgrounds and has extensive experience in Advisory and Discretionary Investment Management, with a particular focus on ESG investing and helping clients align their investments with their long-term objectives and values.

emma.tuckett@capitalfinancialmarkets.co.uk

Joanne Hill

Compliance Manager

Joanne has joined Capital Financial Markets as Compliance Manager having worked in the Independent Financial Advice sector for over 30 years. 

Joanne holds a degree in Business and Finance, the CII Diploma in Financial Planning and has a wealth of experience and knowledge within Financial Services.  Joanne’s role is to protect both Capital Financial Markets and our Clients.

joanne.hill@capitalfinancialmarkets.co.uk

Saffron Heasley

Client Administrator

We are delighted that Saffron joined the CFM team as our business apprentice capably fulfilling the Client Administrator role. Saffron brings enthusiasm, reliability and a strong willingness to learn. In this role, Saffron supports the smooth day-to-day running of the business, providing essential administrative support across the team helping to ensure processes run efficiently and compliantly.

With a keen eye for detail and a proactive approach, Saffron is developing a solid foundation while working closely with colleagues across the organisation. Saffron is a valued member of the team and plays an important role in supporting CFM’s operations as we continue to grow.

saffron.heasley@capitalfinancialmarkets.co.uk

Paula Mitchell

Head of Operations & People

Having worked with us as a consultant for over eight years Paula brings that familiarity to the organisation and has joined the CFM team as Head of Operations & People.

A seasoned finance and HR professional with a masters in HR Management, Paula combines analytical strength with a people-centred approach to drive operational excellence. Paula will be leading the team and supporting Paul with the operations and people strategy ensuring sustainable growth and the smooth running of the business.

paula.mitchell@capitalfinancialmarkets.co.uk