This week we saw further adjustments in the bond markets as investors digest stronger inflation and economic data. Through late 2022 and early 2023, bond investors, particularly in government bonds markets, have been at odds with central bank messaging. The US, European and UK central banks have repeatedly given three messages. First, they would be guided by the data; second, they were determined to get inflation under control; and third, that this may take longer and involve rates going higher than expected. Markets managed to stubbornly resist this messaging for a while but the recent capitulation has seen government bond values decline sharply as investors accept rates are going higher.
Meanwhile, London continues to struggle to attract and retain stock market listings. Softbank confirmed it will list Arm in New York when it returns to the stock market, and building materials supplier CRH announced it is moving its listing to the US. Gambling group Flutter has also said it plans to move its listing to the US. The UK continues to look second best, due partly to the higher valuations usually achieved by US-listed firms.
Read what the team at Financial Express consider to be significant over the current week.