ST. JAMES'S PLACE PLC The world's financial markets have vacillated in recent weeks and the past seven days produced little evidence of a firmer direction. Renewed anxieties over the US economic recovery restored some stability to bond markets, while the S&P 500 index closed at a new - but not dramatic - high.
US industrial production surprised markets by falling in April for the fifth month in a row - economists had expected a small rise. The decrease was partly due to a continued decline in oil and gas drilling, which is down 47% over the year in response to lower energy prices. Markets took the production fall to mean that second-quarter growth in the US economy may be modest, following an underwhelming first three months.
This week's bulletin also includes:
- Renewed anxieties over the US economic recovery push back expectations of a rise in interest rates.
- UK inflation remains at zero as the Bank of England cuts its growth forecasts.
- Greece makes its latest debt repayment while first quarter growth in the eurozone exceeds US and UK.
- Paul Boyne of Manulife comments on Verizon's proposed acquisition of AOL.
- George Osborne announces a summer Budget to confirm taxation and spending cut plans.
View this week's Market Bulletin, which contains thoughts and opinions of St. James's Place and our range of investment managers on the key issues affecting investors.
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