Markets on edge over brewing Ukrainian crisis

This week was dominated by the threats of potential war in Ukraine which had markets on edge around the world. Most people will be breathing a sigh of relief as the week draws to a close and the borders of Ukraine remain intact.

We were greeted by the grim news in the middle of the week that inflation in the UK continued to rise last month, hitting 5.5%, a near 30 year high. 

Forecasters are now predicting that it could hit 7% in the very near future.

This picture is mirrored in both the US and the Eurozone which are also continuing to struggle with high inflation and cost of living increases.

Speculation has grown this week that an almost certain further rise in interest rates in the US and UK is coming when their respective committees next meet.

Interesting news came out of China, which debuted their new ‘Digital Yuan’ at the Winter Olympics.

In currencies, the Pound dropped slightly over the course of the week against the Euro however it is now back to where it started actually slightly higher than Monday’s position. 

Against the Dollar, the Pound saw little movement remaining largely flat. This is a similar picture across most key GBP currency pairings.

Image Copyright: The Presidential Office of Ukraine, CC BY-SA 4.0, via Wikimedia Commons

Previous updates...

BoE Governor: Expect 13%+ Inflation and a Recession!

BoE Governor: Expect 13%+ Inflation and a Recession!

The key update of the week is that the Bank of England has increased its interest rate by 0.5%, the largest increase since the Bank’s operational independence in 1997.  The rate rise comes on the back of a dismal economic forecast by the BoE that forecasted inflation rates of 13%

Fears of recession loom as inflation spirals and confidence declines

Fears of recession loom as inflation spirals and confidence declines

This week has been dominated by the fears of a looming recession following the release of key GDP and confidence data. Significant news was released on Thursday when it emerged that the US economy shrank for a second consecutive quarter. This technical recession is due to a 0.9% GDP contraction

Interest rate rises in the Eurozone & Canada

Interest rate rises in the Eurozone & Canada

It has been a big week in the EU with plenty of data and political action. The ECB has increased interest rates by 0.5%, the first rate rise in the Eurozone since 2011. It comes at a time when inflation has hit record highs of 8.6% and the economic gulf

1 2 3 9