Please find below our Investment Market Update as at 24th March 2023.
Bank tensions ease
The angst around the banking sector has soothed somewhat from the heightened fears, prevalent just some two weeks ago. There has been a partial rebound in banking stocks across the developed world which has helped improve sentiment in equity markets. On Tuesday, the S&P 500 hit levels which were higher than those immediately before the plight of Silicon Valley Bank (SVB) became known.
Rates are still rising
There has been much conjecture as to whether interest rates would be paused due to the fractures appearing in parts of the banking sector. As we expected, the Federal Reserve (Fed) and the Bank of England (BoE) both increased rates by 0.25% this week, unlike the European Central Bank (ECB) who increased rates last week by 0.5%. Remember though, interest rates in the EU are lower than both the US and UK.
Continues….
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Risk warning
Please Note: This communication should not be read as giving specific advice regarding your personal circumstances. This would only be given following detailed assessment of your individual needs. The value of investments may fall as well as rise; you may get back less than invested. Past performance is not necessarily a guide to future returns.
