Gerald Fitzgerald’s Market Review April 8th

LAST WEEK IN 30 SECONDS...

Last week saw markets continue their upwards trajectory with investors responding positively to US employment data and ongoing trade discussions between the US and China. Donald Trump courted the media noting the likelihood of a deal being struck will be known within weeks.

Global Equities in euro terms are up now +16.6% for the year to date. With the continued positive view in economic sentiment, global government bonds eased back from recent lows with the German 10-year bond yield rising 0.08% over the week.

THIS WEEK IN 30 SECONDS...

The Brexit barometer remains firmly on a stormy setting this week as even parliament itself succumbed to the elements with talks suspended due to a water leak. Political discontent across all stakeholders is rife with optimism waning that a deal acceptable by the majority can be achieved. Theresa May is pressing for a further delay by seeking to sit down with the Labour party to thrash out some form of agreement which she can put to Europe on Wednesday.

The US Federal Reserve publishes its latest meeting minutes whilst the ECB discusses monetary policy on Wednesday. From a data perspective, US inflation is due for release on Wednesday along with Eurozone industrial production on Friday.

ITALIAN GROWTH MISFIRING

Italy updates its budget forecast this week. The country’s GDP growth forecast for the year will likely be cut to 0.3%, down from 1.0%. With the country’s debt to GDP position rising, it is timely that the Italian deputy prime minister, Matteo Salvini, hosts a rally of European populist parties in advance of European elections in May. Italy needs like-minded friends after all.