Gerald Fitzgerald’s Market Review December 9th

LAST WEEK IN 30 SECONDS...

Markets were generally quiet last week with global equities finishing the week largely flat. Despite German manufacturing PMIs surprising on the upside, Germany’s industrial releases on Friday highlighted a fall in output to levels not seen since 2009. The German DAX finished the week -0.5% lower.

Elsewhere, Saudi Aramco raised $25.6bn at its initial public offering last week. The sale which represents 1.5% of the company’s value, sees Saudi Aramco becoming the largest oil company in the world.

THIS WEEK IN 30 SECONDS...

This week is a big week for Europe and in particular, the UK with the British general election pencilled in for this Thursday. Whilst polls indicate a Conservative majority being the most likely outcome, experience has taught us the outcome could be otherwise once the final votes are tallied.

From an economic data perspective, US inflation data for November is due out on Wednesday. Whilst both the US Federal Reserve and European Central Bank are due to disclose interest rate decisions, no changes from either central bank are anticipated. Investors will look to monetary policy statements for an update on future guidance.

US UNEMPLOYMENT RATES CONTINUE TO FALL

Despite the continued uncertainty over global growth, the US economy has continued to reduce unemployment adding 266k jobs in November. The unemployment rate has once again fallen back to 3.5%, a level not seen since the 1960s. Whilst wage growth is also positive, it remains weaker than long-term expectations.