New data supports positive economic outlooks | The Week in Markets

With equities making a remarkable recovery this week and with market expectations for major central banks implementing several interest rate cuts by the end of the year, the economic backdrop looks constructive. Kevin Kidney, Head of Asset Allocation and Matt Henderson, Portfolio Manager look at data coming out of the UK and US where we see falling inflation rates for both economies with particular note that US headline inflation is now at a level we haven't seen since March 2021. UK employment surprised to the upside with 97,000 jobs added when markets expected 3,000 but wage inflation has seen its slowest growth since summer 2022. With 90% of corporate earnings reports in, most sectors have delivered positive results with some comments as to slower consumer spending due to higher interest rates. How long before the Federal Reserve take action on interest rates?