US-UK deal helps to support risk appetite
Stocks steady despite gloomier outlook
Over the past 24 hours both the Fed and the BoE have warned that the outlook for their respective economies is worsening, though the former seems in no hurry to cut rates while the latter’s divided policy committee indicates that rate cuts may continue at a slower than expected pace. Despite this, stock markets around the globe continue to edge higher, though in a far more measured pace than was the case in April. Risk appetite remains fragile, since investors remain on watch for signs that a recession is beginning to appear in the data.
FTSE 100 unimpressed by UK-US deal but mid-cap index rises
The past two weeks have seen the UK mid-cap 250 index overtake the FTSE 100 in their rebounds from the April low. Worries about some of the latter’s heavyweight dividend payers have hobbled the FTSE 100, but at least UK-focused firms can breathe easier now that the US and UK have signed a framework trade deal.
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