Institutional Investing / Macro Minutes

Macro Minutes: UK Market Volatility

In our latest Macro Minutes video, Fisher Investments’ Capital Markets Research Analyst Davis Hein offers a global perspective on the recent market volatility in the UK, taking a step back to look at how we got here and differentiate fear from fact as we look forward.

Key Points

  • The UK faced significant headwinds as the year progressed and grappled with slowing economic growth and hotter inflation than developed nation peers, leading to increased market volatility and investor fear.
  • UK yields rose significantly following the announcement of a new budget, while yield curves in the US and Europe reacted on a smaller scale indicating a lack of systemic disruption.
  • Funding costs for the UK remain relatively low, significantly below the 40-year average, allowing the government to continue borrowing relatively cheaply and likely be able to pay its debts for the foreseeable future.

Transcript

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