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Macro and Markets Monthly

Growth in Europe and the United States has proved more robust than expected, while inflation has persisted. Central bankers remain on watch, with the Federal Reserve still in a mind frame of tightening monetary policy, writes Gary Dugan, CIO of Dalma Capital, in his latest Macro and Markets Monthly.

Inflation Fight

The market’s wishful thinking is not coming to fruition. Inflation continues to be a problem. Last week’s economic data releases showed core inflation in the US and UK is on the rise.

Japan Inc is back....

Japan is back…well, at least the equity market is back to where it was more than 30 years ago. Maybe – just maybe – the corporate sector will build on its growing credibility with foreign investors to propel the market to all-time highs.


As expected, the US headline inflation rate fell to 4.9% in April.  With an increase in the Fed funds rate and rebound in long-term interest rates combined with this downward path for inflation, it is only a matter of time before yields turn real.

Stuck in the Grey Zone

Recent economic data have neither painted a picture of exuberance nor of utter despondency. Investors looking for emphatic evidence of one scenario or the other to emerge have been in a bit of a quagmire—it is neither the black nor the white but the grey zone where they find themselves in.

No New Reign in Prospect for UK Asset Markets

May 6th will see the crowning of King Charles III in London. Unfortunately, the coronation of a new monarch comes at a time when the asset markets in the UK are completely devoid of any crowning glory, even as they struggle to prove their relevance to international markets.