Gerald Fitzgerald’s Market Review July 22nd
22 July 2019
LAST WEEK IN 30 SECONDS...
Last week saw US equity markets drop back marginally as investors questioned the outlook for short term interest rates cuts by the US Federal Reserve. Whilst a July cut looks assured, the potential of 3 or 4 cuts previously predicted this year looks less likely. The US NASDAQ finished the week almost 1.2% lower.
With trade concerns ongoing investors added to positions within gold, high quality government bonds and the Japanese Yen – assets which are seen as “safe havens”. Gold finished the week 1.5% higher with the Japanese Yen 0.25% stronger versus the US dollar.
THIS WEEK IN 30 SECONDS...
Corporate earnings results are in full flow this week with over 3,200 companies due to disclose results including tech giants Microsoft, Amazon and Alphabet (Google). Markets will closely look at guidance for future revenue forecasts as an indicator of whether global growth has plateaued or is on a downward trajectory.
From an economic data perspective, the ECB is due to announce its latest interest rate decision on Thursday with no changes anticipated. Elsewhere, Eurozone and US composite PMI figures are respectively due for release on Wednesday.
THUMBS UP FOR FACEBOOK’S SHARE PRICE
2019 has seen global equities race ahead, none more so than within tech stocks. Facebook has seen its share price appreciate by over 50% thus far in 2019 on the back of stronger revenue and ventures into cryptocurrency. More recently, even the announcement of $5bn in fines levied by the US Trade Commission could not stop the share price rising further. Facebook’s quarterly earnings results are due out on Wednesday
By Gerald Fitzgerald, Investment Consultant
Gerald Fitzgerald joined Invesco’s Investment Consulting team in 2015 and has 10 years industry experience assisting clients with their investment & actuarial requirements. Gerald is a Qualified Financial Adviser (QFA) and a graduate of both University College Cork and University College Dublin.