Walker Crips' Market Commentary Walker Crips Investment Management Limited

UK inflation eased sharply in April to 2.3% year-on-year, surpassing market consensus and Bank of England (“BOE”) forecasts of 2.1%, marking the lowest rate since summer 2021. While gas and electricity prices declined, motor fuel prices increased, slightly offsetting the downward pressure. However, core inflation remained sticky, recording a 3.9% figure against a consensus of 3.6%. The key services measure, closely monitored by the BOE for second-round effects, eased slightly to 5.9% from 6.0%, still above the 5.5% consensus.
Stocks featured:
National Grid, RS Group and Marks and Spencer

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 (FRN: 226344) and is a member of the London Stock Exchange.

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There is a continued expectation that the Bank of England ("BOE") will be cautious in lowering interest rates, unlike during past rate-cutting cycles. Bloomberg and Reuters reported concerns about inflation reaccelerating if rates are lowered too quickly due to past downturns such as those in 1998, 2001 and 2008. Markets are currently pricing in the first interest rate cut in August of 0.25%, followed by another potential cut in November.
Stocks featured:
BT Group, Experian and Sage Group

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 (FRN: 226344) and is a member of the London Stock Exchange.

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Last week, the Bank of England ("BOE") decided to maintain interest rates at 5.25%. However, two out of nine officials from the Monetary Policy Committee ("MPC") voted in favour of an interest rate cut, demonstrating a more dovish view and increasing market expectations for a rate cut in June. This shift was predominantly driven by macroeconomic forecasts indicating inflation heading back towards its 2% target shortly. The market response was relatively subdued as investors awaited incoming economic data, with two sets of inflation and labour market updates scheduled before the BOE's June interest rate decision. Notably the BOE Governor, Andrew Bailey, also hinted at the possibility of deeper interest rate cuts, highlighting the institution’s commitment to addressing economic concerns...
Stocks featured:
Boohoo Group, IWG and John Wood Group

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 (FRN: 226344) and is a member of the London Stock Exchange.

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In anticipation of the Federal Reserve’s (“Fed”) upcoming policy decision, the FTSE 100 and gilt yields saw modest increases. This decision is expected to influence the Bank of England's (“BOE”) interest rate strategy. Currently, UK markets have dialled back interest rate expectations, predicting only 0.38% in cuts this year, with the first adjustment anticipated in the fourth quarter. This cautious stance comes despite the slowest rise in UK shop prices since December 2021, as reported by the British Retail Consortium. This reflects a notable deceleration in non-food price inflation and easing food costs.
Stocks featured:
Standard Chartered, Smurfit Kappa Group and Melrose Industries

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 (FRN: 226344) and is a member of the London Stock Exchange.

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Last week saw economists divided over the timing of the anticipated interest rate cuts by the Bank of England (“BOE”). A Reuters poll revealed a division between forecasts for a June cut and a delay until the third quarter. Despite inflation easing to 3.2% year-on-year in March, slightly above the expected 3.1%, persistent service prices and wage growth may delay the BOE’s monetary easing. The International Monetary Fund’s recent downward revision of the UK's growth outlook further complicates the BOE's decision-making, emphasising the need for a cautious approach amid prolonged weak growth...
Stocks featured:
Anglo American, Barclays and NatWest Group

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 (FRN: 226344) and is a member of the London Stock Exchange.

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As inflation dynamics diverge between the UK and the US, the Bank of England (“BOE”) is poised for potential interest rate cuts ahead of the Federal Reserve. Bloomberg reports that the momentum of lowering inflation in the UK, with further easing expected, bolsters the case for a summer rate cut. Despite warnings from BOE Monetary Policy Committee members Jonathan Haskel, Catherine Mann and Megan Greene about the likelihood of rate cuts, market dynamics suggest a shift in monetary policy could occur sooner due to the UK's distinct economic conditions.
Stocks featured:
Mondi, Dr Martens and Dunlem

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.

Hosted on Acast. See acast.com/privacy for more information.