Gerald Fitzgerald’s Market Review 21st October

LAST WEEK IN 30 SECONDS...

A week is a long time in both politics and markets. The political uncertainty surrounding Brexit saw particular volatility for Sterling as hopes for an agreement ascended and attenuated at every other news bulletin.

Earnings disclosures by a number of financials were received favourably by investors, including JPMorgan Chase and Bank of America who both saw their share price rise by over 4% during the week.

Global equities finished the week broadly flat with marginal gains in some developed markets being offset by a stronger Euro.

THIS WEEK IN 30 SECONDS...

Currency markets will no doubt continue to lead the market volatility as the UK continues to press forward with their withdrawal strategy. This week will see a key UK parliamentary vote due on acceptance of the withdrawal terms.

Quarterly earnings disclosures for Q3 2019 ramp up this week with over 2,400 companies announcing results including Microsoft, Amazon and Coca-Cola Co. Elsewhere, the Eurozone purchasing managers index (PMI) indicator is due for release on Thursday along with the ECB’s October policy meeting, albeit with no changes being anticipated.

GLOBAL GROWTH’S EMERGING RELIANCE

The International Monetary Fund (IMF) has lowered its global growth target for 2019 to 3% (0.3% lower than its previous forecast). Whilst the outlook for 2020 is higher at 3.4%, it’s worth noting their prediction of stagnating growth amongst advanced economies and reliance on emerging market economies to help press global growth upwards.