Gerald Fitzgerald’s Market Review July 15th

LAST WEEK IN 30 SECONDS...

Markets had contrasting fortunes last week as US markets continued to trend upwards whilst European and Asian markets trimmed 2019 gains. In the US, the conciliatory rhetoric from US Federal Reserve chairman, Jerome Powell, helped solidify markets expectations of an interest rate cut. Meanwhile, trade concerns and ongoing uncertainty over Brexit continued to hold European markets back with the Eurofirst 300 down 0.87% last week.

Eurozone government bond yields bounced back from historic lows last week with the German 10-year bund yield rising 0.11% to finish the week at -0.25%.

THIS WEEK IN 30 SECONDS...

Corporate earnings results take increasing focus this week with over 800 companies due to provide markets with their latest earnings update. Investors will look closely at underlying profitability and the corporate outlook given the recent softening in central banks’ attitudes to interest rate rises.

From an economic data perspective it is a busy week. European economic sentiment along with US retail sales and industrial production data are due for release on Tuesday whilst European inflation figures are due for release on Wednesday. With annual CPI anticipated to be 1.20%, the result will reaffirm the need for further accommodative central bank policy.

BEYOND MEAT – EATING THE OPPOSITION

In the world of start-up effective marketing is key, in particular if that marketing comes at no cost. Beyond Meat, the vegetarian alternative to animal based products has gained significant media traction with its IPO earlier this year. Whilst investors have flocked to buy the stock, which in turn has seen its share price rise from $45 to $167, the buzz surrounding the company has also helped baseline sales numbers. Like all successful consumer products brand recognition is paramount to beating the competition.