Markets bounce back: a timely reminder to stay invested
Global markets have rebounded after a sharp dip triggered by US tariffs. In our latest addition of investment perspectives, we look at what’s happened, why investors are feeling more confident, and what it means for your portfolio. Key headlines and a link to the full report below:
- Markets rebounded sharply following a de-escalation in US-China trade tensions, as both countries agreed to a 90-day reduction or suspension of tariffs.
- Just weeks ago, a US/China de-escalation seemed unlikely – this turnaround is a powerful reminder of why staying invested through uncertainty matters.
- Some of the best daily returns often follow periods of major uncertainty – miss those days, and it can significantly impact long-term performance.
- Global markets have rallied strongly, but heightened geopolitical uncertainty means we expect continued volatility in the short-to-medium term.
UK inflation - view from Patrick O'Donnell - Senior investment strategist
Following yesterday's inflation announcement, Senior Investment Strategist Patrick O'Donnell also shared his insights. Read his comments here.
UK's annual inflation rate came in above analyst expectations, rising to 3.5% in April. The big surprise was in Services inflation, which came in at 5.4%, relative to consensus forecasts of 4.8%. The drivers of this were a mix of seasonal factors and price resets; excluding volatile items, Services inflation increased at a slower pace than last month.
Whilst the BoE is likely to look through many of the price resets and one-offs, at their recent meeting, they highlighted that they are still in a gradual and cautious rate-cutting cycle, with this data supportive of that stance.
