Economics
Markets React To Rishi Sunak’s ‘Winter Plan’
A comment from Giles Coghlan, Chief Currency Analyst at HYCM, reacting to Chancellor Rishi Sunak’s ‘Winter Economy Plan’, and discussing what this is likely to mean for investors and the financial markets. The comment is based on what the Chancellor is likely to announce. Q2 2020 hedge fund letters, conferences and more Comment On Rishi […]
The post Markets React To Rishi Sunak’s ‘Winter Plan’ appeared first on ValueWalk.

A comment from Giles Coghlan, Chief Currency Analyst at HYCM, reacting to Chancellor Rishi Sunak’s ‘Winter Economy Plan’, and discussing what this is likely to mean for investors and the financial markets. The comment is based on what the Chancellor is likely to announce.
Q2 2020 hedge fund letters, conferences and more
Comment On Rishi Sunak’s Winter Economy Plan
Giles Coghlan, Chief Currency Analyst at HYCM
“The financial markets have largely welcomed Chancellor Rishi Sunak’s speech, sparking a short surge in trading activity. However, this will likely be short lived, and I anticipate a general retreat to safe haven assets and cash savings as investors look to hedge against market uncertainty. In the coming weeks, I expect to see a weakening pound on ongoing Brexit risks and rising demand for gold once the recent bout of USD strength subsides.
“Today’s announcement also shows the government is in a precarious position. Rather than focus on the long-term, it is clearly fire-fighting the immediate dangers of the crisis. Importantly there is no telling what else will be required to bring about a post-pandemic recovery if COVID cases do not drop. Just how deep are the treasury’s coffers? Can any more relief be offered? Will an effective vaccine be released before the end of the year? Only time will tell.
“The timing is not ideal. Last week, the Bank of England hinted that negative interest rates could be introduced as early as Q1 2021. Add to the mix the rising possibility of a no-deal Brexit, and it suddenly becomes clear that choppy waters lie ahead for investors in the UK.
“In my opinion, the challenge remains the same. The government must ensure investor confidence is effectively maintained over the coming months if they want to promote economic growth and moderate levels of productivity. Importantly, GDP has been rising month-on-month and the FTSE has been making modest gains during the summer. I am eager to see whether this can be maintained.”
The post Markets React To Rishi Sunak’s ‘Winter Plan’ appeared first on ValueWalk.

Beware! 7 Growth Stocks Waving Massive Red Flags Right Now
While hopes for long-term returns may lure investors to growth stocks, some of these very stocks should be avoided. Especially if they’re waving red…
‘Higher For Longer’ Reality-Check Wrecks Bonds, Banks, & Big-Tech
‘Higher For Longer’ Reality-Check Wrecks Bonds, Banks, & Big-Tech
Despite being told – for months – that The Fed wanted to keep rates…
Dear Potential BIRK Stock Investors, Mark Your Calendars for an October Birkenstock IPO
Source: shutterstock.com/Josh Forden
Following a long drought in high-profile initial public offerings (IPOs), sandal maker Birkenstock is allegedly poised…
-
Companies16 hours ago
Eye on Lithium: A sniff of Sigma-like success has ASX hard rock explorers moving to Brazil
-
Uncategorized19 hours ago
ASX listers prove green energy is the dominant flavour at Sydney Opera House investor lunch
-
Energy & Critical Metals19 hours ago
Where there’s smoke, there’s fire: Charger confirms lithium at three Bynoe prospects
-
Uncategorized16 hours ago
ASX Small Caps and IPO Weekly Wrap: How bad was it? I’m honestly afraid to look…
-
Uncategorized21 hours ago
Hard drilling Mako is proving up an 870,000oz-and-growing gold project and emerging manganese discovery at the same time
-
Companies9 hours ago
Solaris Resources’ (TSX:SLS) Lowell Mineral Exploration Earns Level 1 Carbon Footprint Badge from Ecuador’s Ministry of Environment
-
Companies4 hours ago
FPX Nickel shares rally on battery metals MOU
-
Uncategorized23 hours ago
Beware! 3 Battery Stocks Waving Massive Red Flags Right Now