Gerald Fitzgerald’s Market Review October 30th

LAST WEEK IN 30 SECONDS...

Global markets were further in the red during the week with significant fluctuations seen across equity markets in particular. Whilst the actual catalyst is not fully known, various reasons for the indiscriminate sell-off were reasoned including reaction to ongoing interest rate rises, global trade tariffs and upcoming US midterm elections. Within sectors the main detractors were Energy (-7.1%), Industrials (-5.6%) and Financials (-5.2%).

With risk-off sentiment increasing, the US Dollar continues to be a safe haven currency, further appreciating versus its peers. The US Dollar has now strengthened 5.3% versus the Euro over the year-to-date.

Meanwhile, Italian bonds received some temporary relief as the credit ratings agency, Standard & Poor’s, reaffirmed the country’s existing credit rating at BBB with a change in outlook from Stable to Negative.

THIS WEEK IN 30 SECONDS...

Earnings season continues this week including Apple and Kraft Heinz releasing Q3 results on Thursday.

Against the back-drop of recently increasing energy prices, Eurozone inflation metrics are released on Wednesday. Elsewhere, Eurozone unemployment figures are due for release on Wednesday with US labour information due for release on Friday.

EUROZONE GDP SPOOKS OPTIMISM

Eurozone Gross Domestic Product (GDP) rose 0.2% over Q3, lower than initial estimates of 0.4%. This followed confirmation that Italy’s GDP growth was flat over Q3, adding further scepticism that an imminent resolution can be reached on Italy’s budget.