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Central Banks Financial Planning News

  • Financial Outlook: Caution Ahead

    • 5th February 2024
    • Posted by: Celticfp
    • Category: Investment Committee
    No Comments
    Financial Outlook: Caution Ahead

    The end of January brought an unexpected twist for investors. Just when we thought we were adjusting to the idea of delayed interest rate cuts, the US Federal Reserve’s announcement took everyone by surprise…

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  • Year End Insights

    • 15th December 2023
    • Posted by: Celticfp
    • Category: Investment Committee
    No Comments
    2023 Markets in Review

    The market’s holiday surprises were essentially shaped by central bank figures. Though Andrew Bailey and Christine Lagarde played smaller roles compared to Jerome Powell.

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  • Turn in Market Winds

    • 3rd November 2023
    • Posted by: Celticfp
    • Category: Investment Committee
    No Comments
    Turn in Market Winds

    What a difference a week makes in the financial world! Now, as we take stock of the past week, we’ve seen a remarkable rebound in the markets that has provided so much needed respite.

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  • Downturn concerns resurface

    • 6th October 2023
    • Posted by: Celticfp
    • Category: Investment Committee
    No Comments
    Downturn concerns resurface

    The warm fall weather persists into October, yet the financial cold front from September is more concerning. Our upcoming article delves into the recent asset class performances.

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  • The Dilemma of Yields

    • 25th September 2023
    • Posted by: Celticfp
    • Category: Investment Committee
    No Comments
    Stock Markets, Yields and AI

    Recently, the stock and bond market suffered a blow due to the ‘hawkish pause’. On Wednesday, the US Federal Reserve (Fed) clarified its intention to maintain the interest rates at 5.25-5.5%

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  • Growth Varies Globally

    • 29th August 2023
    • Posted by: Celticfp
    • Category: Investment Committee
    No Comments
    Growth Varies Globally

    Recently, there was a global drop in bond prices, which caused their yields (returns) to rise. But by last week, these yields decreased because businesses felt less confident about the future.

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  • Markets Defy Hikes

    • 31st July 2023
    • Posted by: Celticfp
    • Category: Investment Committee
    No Comments
    Markets show resilience

    Understanding the complex world of finance and markets is crucial for every investor. Here’s a simplified breakdown of recent events that have shaped the global economic landscape.

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  • Global Markets: Midyear Analysis

    • 3rd July 2023
    • Posted by: Celticfp
    • Category: Investment Committee
    No Comments
    Mid Year Stock Market Review

    The second quarter witnessed a favourable trend towards global risk assets, despite UK assets falling behind, marking a stark contrast to the gloomy situation back in March…

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  • Global Optimism Amid Disinflation

    • 13th June 2023
    • Posted by: Celticfp
    • Category: Investment Committee
    No Comments
    Wall Street Rises

    Global equities saw a positive trend last week, as hope for a mild economic downturn in 2023 strengthens. Gains in the stock market have extended beyond large-cap companies to mid and small-cap.

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  • Tech Surge Despite Fluctuations

    • 20th May 2023
    • Posted by: Celticfp
    • Category: Investment Committee
    No Comments
    In the past week, the financial landscape has continued to fluctuate, yet overall, the stock markets have trended upward. Japan's equity market, in particular, has seen a strong performance with consistent growth. This progression has occurred even in light of less than stellar economic data and currency depreciation. Notably, American stock markets have seen impressive growth, driven largely by significant tech companies. Q1 earnings reports have exceeded expectations, marking a return to projected earnings growth for developed world stocks after a half-year decline. In Europe, cyclical sectors have come out on top while real estate has lagged. The year's latter half has seen an approximate 8% growth rate, although the outlook for 2023 as a whole remains modest at a mere 1% compared to 2022. Rising interest rates continue to impact companies, raising concerns about the European Central Bank's future monetary tightening. In the US, retailers have noted a sustained decrease in expenditure on luxury and other discretionary items. Nonetheless, the pent-up demand for services is still being released, especially for sectors such as travel and entertainment. Interestingly, revenue expectations have been exceeded in both regions. In Europe, although margins remain tight, sales have markedly improved. US corporations have also seen an upturn in both sales and margins, reflecting a more stable economic environment. These observations align with improved global service sector purchasing manager indices (PMIs) and the ongoing discussions around banking stress, shareholder cash return, and artificial intelligence during earnings calls. Artificial Intelligence (AI), particularly its use and development in chatbot applications, remains a hot topic in business circles. The industry seems divided in its approach to AI, with service companies seeing it as a threat while others view it as an opportunity for cost-cutting. Yet, only a select few stand to benefit directly from AI – namely, hardware manufacturers at the forefront of fast computing and software tech companies with significant capital to invest in research and development. Understandably, the top performers have been hardware giants like NVIDIA and behemoths like Microsoft, Amazon, and Alphabet. The NASDAQ 100, which includes many of these winners, has shown an improvement in both earnings forecasts and price-to-earnings multiples. This tech surge, reminiscent of the dotcom bubble's onset, is happening amidst a backdrop of not-so-low and even increasing yields, indicating an element of defensive investing. The US dollar's recent strengthening and the tightening liquidity signalled by the rush for offshore dollars are further indications of a cautious investor sentiment. While the promising earnings results, particularly in the US and Europe, bring a measure of optimism, the enduring financial constraints for many companies and the AI-centric narrowing of profitability breadth temper this outlook. Central banks taking a less hawkish stance would indeed bring a greater sense of optimism

    In the past week, the financial landscape has continued to fluctuate, yet overall, the stock markets have trended upward. Japan’s equity market, in particular, has seen a strong performance

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