The FTSE was the main winner in a week dominated by UK data and events. All eyes will be focused on the April US CPI figures next week after March's print presented a major bullish catalyst for the greenback.
(AI Video Summary)
We place a key focus on the current economic and market conditions, with a particular emphasis on the UK coming out of recession and the implications for financial markets. Key insights include robust UK GDP growth positioning it strongly within the G7, potentially influencing the Bank of England's monetary policy, including discussions on imminent interest rate cuts. Speculation on rate cut timings varied, with August seen as more likely than June, despite strong GDP figures. The conversation also touched on the US market, with expectations of a Federal Reserve rate cut later in the year, influenced by inflation and labor market data. The strength of the FTSE 100 was highlighted as a sign of optimism in the UK market, bolstered by fundamental factors and meriting a longer-term positive outlook.
The broader risk sentiment and the performance of US indices and the volatility index. Lastly, gold's upward movement was discussed as a potential safe haven amid geopolitical tensions and structural concerns about the US dollar.
