Some good macro news for UK stocks today: 1. BoE Decision Ma...

Some good macro news for UK stocks today:

1. BoE Decision Maket Panel - UK firm's output price expectations continue to fall sharply. Expected price growth fell to 4.2% YoY (down from a high of almost 7% YoY in mid-2022). Realized price growth is down every sharper to 4.9% YoY when it was 7.5% YoY still in August.

2. M4 Money Supply - The Bank of England reported that the M4 supply was down -2.3% YoY in Nov which is up from -3.8% YoY in Oct. If that is true, it appears that the worst of the contraction in the UK money supply is behind us.

Bottom Line: Improvements in inflationary pressures will give the Bank of England more leeway to cut rates and ease monetary conditions which is naturally favorable to equities.