13 January 2025
Rise in UK gilt yields – a canary in the Bank of England mine – Download Chart of the week
The Market Place – Download Market Data
- US financial markets declined due to robust job growth exceeding forecasts, raising concerns about sustained inflation and interest rates.
- UK financial markets faced significant challenges. Government bond yields surged to levels not seen in decades, reflecting investor concerns over fiscal policies and economic stability and the pound weakened against the dollar.
- Eurozone financial markets declined, this was driven by a stronger-than-expected US jobs report, which reinforced expectations of prolonged higher interest rates by the Federal Reserve.
- The United Nations projects global economic growth to remain at 2.8% in 2025, reflecting resilience against conflicts and inflation, with strong performances expected from economies like China, the US, India, and Indonesia.
