Gerald Fitzgeralds Market Review 29th July
29 July 2019
LAST WEEK IN 30 SECONDS...
Markets pressed ahead last week on the back of positive corporate earnings disclosures and positives squeezed from rhetoric about further talks in the ongoing saga that is US & China trade negotiations. Economic data releases highlighted signs of slowing economies in particular, Germany with a fall in manufacturing output.
With the aid of a weakening Euro versus the US dollar global equities, in euro terms, returned almost 1.7% last week bringing the overall return for 2019 to date to 21.8%.
THIS WEEK IN 30 SECONDS...
Corporate earnings disclosures continue this week with over 3,900 companies due to provide their latest update including Apple, Berkshire Hathaway and Qualcomm. Whilst markets will continue to look to these announcements as a guide to global health, the primary focus this week will be on the US Federal Reserve.
On Wednesday, Jay Powell will announce a highly anticipated interest rate cut, predicted to be 25bps. With this cut effectively priced in any result to the contrary will see potentially volatile trading conditions.
Elsewhere from an economic data perspective, Eurozone inflation figures are due for release on Wednesday.
THE AUTOMOTIVE INDUSTRY’S CHINESE RELIANCE
The global automotive industry has been hit hard by the ongoing trade disruption between the US and China. With trade talks set to continue, the longer this stand-off drags on the harder the profitability impact will be on the western world’s automotive industry.