Markets retreat as uncertainty increases

Markets are still pulling back after the S&P500 finished the worst post-pandemic month, dropping 4,75% and closing at the lowest level since July. Some of the main factors contributing have been the looming energy crisis along with uncertainty regarding the debt situation of the Chinese developer Evergrande, which could have far reaching consequences on global markets. In addition, the standstill of the US government did little to help moods as inflation pressures mounted and while the FED continues to downplay them despite prices of commodities like Oil and NatGas reaching multi year highs. While there are some genuine worries about the future of the economic recovery, the final trading session of the week could see some increased volatility as investors await some key data from the US in the afternoon after this morning's European PMI’s were in line with expectations. 

UK furlough scheme ends after one in four workers take part in it

The furlough scheme set up to support workers through the pandemic has come to an end as today's ONS report gives us some further information about how it was applied and who were the main recipients. It is clear that the scheme played a vital role in supporting the economy as one in four workers took part in it at some point or another with those having GCSE’s or lower being more likely. While the termination of the scheme could push some more people back into the workforce and potentially mitigate the current labour shortage, it remains unclear what segment of the furlough recipients will reenter the job market and how quickly many of them will be able to adjust.