Market Overview|Quilter Cheviot

US inflation continues to cool

Our Weekly Market Overview from Quilter Cheviot

By Alan McIntosh, Chief Investment Strategist

The US consumer price index (CPI) for March brought encouraging news on the inflation front with the year-on-year increase of 5% the lowest reading for this gauge since May 2021. The print was marginally lower than consensus forecasts, the third time in the last six months this metric has come in lower than expected. Global stock markets responded positively to the news with the MSCI All Country World Index rising 1.3% on the week to take its 2023 return to 8.8%.

There was also good inflation news on the producer side, with the US core producer price index showing a 0.1% monthly decline, its first negative reading since April 2020 when large parts of the economy were shut due to pandemic-induced shutdowns. Although inflation dynamics are improving derivatives markets are surprisingly dovish, giving an almost 50% chance that the year end Fed funds rate is at least 50 basis points lower than its current 4.75%-5.0% target range…

Read the full article here…

The value of your investments and the income from them can fall and you may not recover what you invested.

Image to show we are a member of the FT Top 100 Financial Advisers 2023