Markets Explained

The US midterm elections loom this week, but with the polls suggesting at least some loss of control for the incumbent government, the outcome may not be big news for markets. The latest economic data is therefore likely to be more instructive, and with US payrolls on the docket, there is plenty to discuss.

In this week’s podcast, Hugh is joined by special guest Jon Ingram, Head of the Unconstrained team within the International Equity Group. With mega-cap tech earnings having been met with disappointment by the market so far, Hugh and Jon unpack what investors most want to hear from company management on AI capex, as well as how France’s political volatility is impacting European stocks.

The news flow this week, whether from highly indebted data centre builders or the French riots, is a reminder that higher bond yields will always create stress somewhere.

In this episode, Hugh and Karen dive into the upcoming earnings season and highlight the questions on their minds in the tech space and beyond.

The US labour market could have added fuel to the bond market fire last week, but in fact it still looks broadly stuck in a ‘no hire, no fire’ pattern. With more and more oil leaving the Strait of Hormuz, one might also have expected the bond market to calm down. Hugh and Karen share their initial thoughts on what’s still worrying the bond market.