Daily Brief – UK Equities

UK Equities

We wrote recently about a European wide Santa Rally in Equities despite the political headwinds in Continental Europe, but it looks as if the UK market has finally managed to break out on the top side of its range and without wishing to jinx it, may be set fair. One well known Fund Manager is sufficiently optimistic to be calling it the start of a 20 year up trend. Before reaching for the celebratory cream Sherry however, it might be worth remembering that markets very rarely move in a straight line for long periods of time. That applies to the UK markets in spades given its solo status.

GBP/ZAR 22.95.

Crypto

As regular readers will already know, SGM-FX does not offer pricing in Cryptocurrencies and is restricted in what we can offer our clients when entering and exiting crypto transactions when it comes to payments. However we continue to try and provide solutions tailored to our customers’ requirements. While endless column inches are devoted to Bitcoin breaking through the psychological and absolute level of USD 100,000, there is less thought given to what next and what the implications of a pro crypto US President and some of his equally supportive senior appointments. For example, does it make sense for the USA and Asia to be legitimising crypto while the EU and in particular the UK’s monetary authorities are sending mixed messages? EG supporting the development of CBD or Central Bank Digital currencies but resisting putting a regulatory framework in place for other crypto currencies. The stance by the USA in the next four years will inevitably shape the agenda for the rest of the world. Watch this space.

GBP/USD 1.2720.

EURO

In the past 24 years, EUR has averaged gains of 1.6% in December and has ended up on the month in 18 of those 24 years. 2024 looks like being one of the years where EUR is unlikely to maintain that record. Trump tariffs, no French government, an upcoming snap German election and geo political tensions all add up to it still being more of a USD story rather than a EUR one in December 2024.

EUR/USD 1.0530.

Sumo

The Japan Sumo Association is coming back to London in 2025 with shows at the Royal Albert Hall between October 15-19. So if you are keen on this fighting art form or even if you just like chunky guys in loincloths, buy your tickets soon to avoid disappointment.

USD/JPY 150.13.

Still Crazy After All These Years

Paul Simon released this album in 1975 little knowing that 50 years on he would sound even crazier but just as good as he did in the 1970’s.

I met my old lover on the street last night
She seemed so glad to see me, I just smiled
And we talked about some old times, and we drank ourselves some beers
Still crazy after all these years
Oh, still crazy after all these years

I’m not the kind of man who tends to socialize
I seem to lean on old familiar ways
And I ain’t no fool for love songs that whisper in my ears
Still crazy after all these years
Oh, still crazy after all these years

Four in the morning
Crapped out, yawning
Longing my life away
I’ll never worry
Why should I?
It’s all gonna fade

Now I sit by my window and I watch the cars
I fear I’ll do some damage one fine day
But I would not be convicted by a jury of my peers
Still crazy after all these years

Have a Great Weekend!

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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