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Episode overview
- After a brief recovery, stock market volatility has returned since the start of April as a resolution to the conflict in Ukraine appears increasingly remote. Its knock-on effects are being seen in soaring inflation and slowing economic data
- The corporate sector has remained fairly resilient in spite of the conflict, with companies able to pass on higher input costs and sustain earnings. Households have also proved robust in spite of rising prices
- Central banks are committed to fighting inflation through higher rates. US real yields turned positive this month for the first time since 2020
- The withdrawal of monetary stimulus is forcing stock markets to stand on their own feet and will introduce risks. However, there remain opportunities amid the volatility
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Disclaimer
This article was previously published on Tilney prior to the launch of Evelyn Partners.