Markets expect potential record highs in equity markets with likely positive impact for individual stocks.

From Morningstar: 2024-06-14 06:21:00

Futures trading shows less than 10% chance of rate cut next week, August more likely. Bank meeting before UK election stokes caution. BoE history of surprising markets. Mortgage rates high despite lowered inflation, affordability challenges persist. Equity markets generally respond positively to rate cuts, record highs in UK. Bonds can benefit from rate cuts, higher bond prices expected.

Equity markets generally respond positively to rate cuts, record highs in UK. Bonds can benefit from rate cuts, higher bond prices expected. Small-cap stocks may benefit most from rate cut. Well-diversified portfolio recommended amid uncertainty. Rate cuts may lower yields, boosting bond prices. Lower rates increase value of existing bonds. Surprise rate cut would catch bond investors off guard.

Markets expect rate cuts, potential record highs in equity markets. Small-caps and utilities likely beneficiaries of rate cut. Lower rates boost bond prices, higher bond values expected. Well-diversified portfolio recommended for investors. Uncertainty surrounding interest rate decision. All eyes on Bank of England meeting next week.



Read more at Morningstar: What if the Bank of England Cuts Rates?