Choppy water but no storm, yet

6 September 2019

The week has, yet again, felt tumultuous. The government’s Brexit strategy has been halted in its tracks by a miscalculation of the official opposition and internal Conservative Party opposition. Many commentators were also...

Fattening ‘tails’

30 August 2019

It does not happen often that market-moving news emerges after we have finished writing The Tatton Weekly. Last week proved to be an exception. Having just commented on how politics and the prospect of fiscal easing by US and...

Populism politics reversing austerity?

23 August 2019

Following last week’s excitement over the yield curve inversions in the US and UK – which have been powerful recession predictors in the past – this week saw the return of calmer capital markets. World stock markets have...

Market spat between bond and equity markets

16 August 2019

Last week, we suggested that the recent market pullback (down, then up to almost recovered) is unlikely to be the end of this bout of market volatility. Sure enough, markets became even more volatile over this week, despite the...

Bond markets unnerve equity markets – again

9 August 2019

We have repeatedly commented on these pages that the good mood in asset markets this year is more to do with central bank policy than a positive backdrop of the real economy. With poor economic fundamentals, central banks will...

The Elephant and the Little Old Lady: A tale of two Central Banks

2 August 2019

It was the best of times, it was the worst of times. Dickens’ immortal line roughly sums up the differing actions of two of the world’s major central banks this week. In the US, the Federal Reserve looked at a stable and growing...

The quick and the not-so-quick

27 July 2019

It’s official: May is out and Boris is in. But despite the political changes this could bring, currency markets hardly reacted. £-sterling started the month at €1=£0.897, and remains at that level at the time of writing....

Twere well it were done quickly

19 July 2019

It has been another reasonable week for risk assets, especially equities. At the time of writing, markets around the world are within a percentage point of last week’s highs. In the US, large cap stocks are floating just off...

Liquidity drives stock markets to new highs – for how long?

5 July 2019

The highly anticipated meeting between US President Trump and China’s President Xi Jinping at the G20 summit in Osaka came and went - with somewhat of a damp squib outcome compared to some sky-high expectations of an end to...

The middle of the year – a tipping point?

28 June 2019

We’re heading into the end of the first half of the year, so let’s go through where what we were thinking at the start of the year and where we are now. The end of 2018 saw another bout of market liquidity squeeze and its...