Market Update

The week began on a somber note with rising energy prices, which turned the market's attention towards its effects on inflation and interest rates, coupled with the US nearing default.
However, there was a silver lining as the sharp hike in gas prices began to roll back. This was propelled by remarks from the Russian President, Vladimir Putin, suggesting Russia might amplify its natural gas exports to Europe. Furthermore, the US Energy Secretary, Jennifer Granholm, paused the oil price surge by contemplating the release of oil from the US strategic petroleum reserve.
On the political front, Senate Republican Leader Mitch McConnell's agreement to a brief debt ceiling extension prevented a potential US government default. As a result, global stock markets pivoted, ending the week on a brighter note.
These developments undeniably favor global equity markets, highlighting their resilience even amidst challenges. However, it's essential to remember that financial markets are inherently unpredictable. We anticipate that this heightened market turbulence will persist in the upcoming months.
We recognize the anxiety this market volatility might induce, but we remain optimistic for long-term investors. Market fluctuations are a given, and the present situation is no exception. While it's challenging, it's crucial to avoid impulsive decisions and keep a long-term view.
In the upcoming week, we'll see: US & Chinese CPI & PPI; US retail figures; UK employment stats including unemployment rate and weekly earnings; industrial outputs from the UK & Eurozone; and UK's August GDP.
We'll also be observing the Empire State manufacturing survey and the consumer sentiment index from the University of Michigan.