UK Economic Update – 26 September 2014
UK interest rate rise “drawing closer” – Mark Carney
An empty calendar for economic data in the UK left Thursday a speech from Bank of England Governor Mark Carney as the main event for sterling focused investors.
Here the Governor, speaking at an insurance industry conference, warned against the perils of recklessness in risk management departments while drawing attention to the need to exercise caution when using internal models to calculate capital requirements under certain conditions.
In addition to this, the governor also fired a shot across the bows of investors when he stated to his audience that the time when interest rates would need to rise is “drawing closer”.
All in all, a lack of macroeconomic developments, the announcement of US air-strikes in Syria and an increase in rhetoric relating to the looming conflict in the middle east each led the FTSE 100 to a lower close for the week.
Looking ahead, the coming days see another round of manufacturing, services and construction PMI’s released to the market, providing further insight into the likely pace of the recovery as we head into the closing months of the year.
In addition to the above, US payrolls and unemployment data for September is set to provide an indication of whether, or how, the Fed’s policy stance could evolve ahead of the next FOMC statement at the end of October. This will also have a considerable effect on London markets.
FTSE 100
.
IMPORTANT:
The contents of this report and the Stockatonia website (https://www.stockatonia.co.uk/) have been prepared to provide general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Please always remember that the value of investments may fall as well as rise. Investing in securities, and any other products associated with them, carries a high degree of risk and may not be suitable for all investors. For advice or guidance related to investing in securities markets, please consult with your own financial adviser.
Disclaimer
The information provided by Stockatonia, via both the telephone as well as the Stockatonia websites, is prepared as general information and general information only. As a result, the information in question does not constitute a recommendation to either buy and sell or not to buy and sell, any items or products treated as securities or financial instruments under UK laws and regulations.
To the extent that it is necessary, you agree not to act directly upon any information made available via telephone contact with Stockatonia and its representatives, as well as online contact with Stockatonia and its representatives, without first consulting your own financial adviser or investment adviser.
To the extent that it is permitted under the laws of the United Kingdom, Stockatonia and its representatives can accept no liability whatsoever in relation to losses incurred by clients, prospective clients and members of the public where these losses have arisen out of action, or inaction, which has taken place as a result of any form of contact with Stockatonia or its representatives.
This may be contact carried out by internet-driven media, letters and materials which are sent by post as well as information conveyed by Stockatonia and its representatives via the telephone.
Leave A Comment