The Bank of England (BoE) raised rates in early November from 0.25% to 0.5%. A decent boost from the services sector helped third-quarter GDP grow by a faster than expected 0.4%, a solid enough justification for the hike.
A North Korean missile, potentially capable of carrying a nuclear payload, soared over Japan in late August and sunk into the Sea of Japan. In response, 10-year Japanese government bond (JGBs) yields sunk too, from 0.009% to -0.009%.
Currencies bounced around last month as investors debated the strength of the UK’s Brexit negotiating position, whether the Federal Reserve (Fed) will slow its rate hikes, and if the European Central Bank will soon cut the number of bonds it buys each month as part of its quantitative easing programme.
Rathbones Asset Management
8 Finsbury Circus
Rathbones Asset Management Limited is authorised and regulated by the Financial Conduct Authority and a member of the Investment Association. A member of the Rathbone Group. Registered Office 8 Finsbury Circus, London EC2M 7AZ. Registered in England No 02376568.