Weekly Market Update – Week Ending 26/04/24
British households will breathe a sigh of relief this week as data from research company Kantar indicated an easing in grocery price inflation, falling to a 30-month low of 3.2% in the four-weeks to mid-April. This was down from 4.5% the previous month, the lowest it has been since November 2021. However, this does mean prices are still rising, albeit at a slower pace.
The UK economy continues its shift towards services and away from manufacturing as data from the ONS shows services export volumes have risen nine times faster than goods since 2010. While services exports have experienced a strong recovery since the pandemic, the same cannot be said for the export of goods, as volumes remain below 2013 levels.
In Japan, the central bank opted to keep rates at near-zero, sending the yen to a new 34 year low, as investors anticipate the rate differential between the US and Japan will continue to put pressure on the currency.
FTSE100 heavyweight, Anglo American, has rejected an unsolicited offer by BHP, to buy and then break up the UK-listed miner for £31bn, as the proposal “significantly undervalues” the company. Analysts are now speculating whether rivals Glencore and Rio Tinto will attempt competing bids, prompting a hostile takeover battle. Australian-listed BHP closed down 4.6% today due to investor concerns that they may have to pay more to complete the deal.
Andrea Wood, Chartered MCSI
Investment Manager
