Taking Stock on Wednesday 13th December 2023
2024 will see a Recession fuelled Rally
The UK economy took a surprise tumble in October, according to an early official estimate that showed a contraction of 0.3%.
UK GDP (MoM) (Oct)
Actual -0.3%
Forecast 0.0%
Previous 0.2%
City investors are now pricing in four quarter-point cuts to UK interest rates from the Bank of England next year.
The money markets are currently indicating that UK interest rates will have fallen to around 4.25% by December 2024, down from 5.25% today.
The first cut is expected by May next year (to 5%), with further reductions being pencilled in for the second half of 2024.
If the UK does slide into a mild recession, as some economists are warning, then there would be serious pressure on the BoE to cut rates.
But the Bank might push back against these rate cut expectations tomorrow, when it sets UK borrowing costs for the last time this year.
Companies mentioned on, "Taking Stock" today, include:
01:30 05:05 McBride #MCB
07:40 & 10:30 Volution #FAN
07:55 & 12:40 Eneraqua #ETP
14:24 & 22:22 AJ Bell #AJB
15:00 Chemring #CHG
19:00 Essentially #ESSN
19:25 Hvivo #HVO
23:10 Avacta #AVCT
31:25 Greatland Gold #GGP
32:18 Bushveld #BMN
33:23 Power Metal Resources #POW
34:00 Revolution Beauty #REVB
35:00 Seeing Machines #SEE
38:05 Cohort #CHRT