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Gerald Fitzgerald’s Market Review October 29th

29 October 2019

 

 

LAST WEEK IN 30 SECONDS...

Further signs of warming relations between the US and China saw markets move higher. This was despite challenging economic data releases continuing to divide market outlook. Brexit crawled forward with Boris Johnson attempting to press ahead with a withdrawal deal that continues to divide the UK parliament.

Within the Eurozone Mario Draghi gave his final speech before handing over the presidency to Christine Lagarde who is tasked with helping reenergize flagging growth and benign inflation. Global equities finished the week 1.7% higher, with equities now delivering in excess of 23% for 2019 to date.

 

THIS WEEK IN 30 SECONDS...

The week ahead sees Eurozone inflation being released on Thursday, however, the main driver of markets for the period from a data release perspective will see the US Federal Reserve announce its latest interest rate policy. With disimproving data, markets are relying on more supportive central bank policy to stave off a further deterioration in market sentiment.

Quarterly earnings disclosures for Q3 2019 continue this week with over 3,600 companies announcing results including Apple, Samsung and Berkshire Hathaway.

 

JEROME POWELL THE MUSIC MAKER

Markets continue to tick upwards aided by the soothing sound of central banks’ melodies. The US Federal Reserve Chair Jerome Powell will announce the committee’s rate decision for October on Wednesday. Despite slowing economic data, markets continue to persist with their recent upward trend driven largely by expectations that the US Fed will once again cut interest rates to support markets further. The party looks set to continue for another song at least.