Financial markets appear to have taken the recent signs that the downturn in the UK economy is past its absolute worst at face value, with equities, bond yields and the sterling exchange rate all rising to at least six month highs. But while the movements seen so far appear justified by the improvement in the economic data, we suspect that it will take more convincing signs that the economy has returned to a path of solid and sustained expansion for equities and bond yields to rise much further. This point could still be some way off.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services