UK corporate sector heads into slowdown in good shape

The bearish market sentiment has reached extreme levels, and is feeding off the one major problem dw...

The bearish market sentiment has reached extreme levels, and is feeding off the one major problem dwarfing all other concerns: the oil price. The continued rise of oil has amplified inflationary concerns, meaning that interest rates are staying up in spite of a weakening of demand in the economy. The oil price rise is like a huge tax hike to oil users, sucking away spending from other areas and increasing the costs of energy-using companies, in turn leading to profit downgrades. In the current environment, belief that oil will not keep rising is necessary in order to be positive about e...