Gerald Fitzgerald’s Market Review September 9th

LAST WEEK IN 30 SECONDS...

Equity markets received a further bounce last week with the US and China pencilling in further talks and the political threat of retaliation to the ongoing demonstrations receding in Hong Kong. In the UK, momentum for a No Deal Brexit took a step back from the precipice as Boris Johnson found allies harder to come by be it from opposition parties, Tories or even within his own family.

The risk-on position last week saw some “safe haven” positions unwind marginally with the German 10 year bund yield rising by 0.07%, gold falling by 0.6% and Japanese Yen falling versus its developed currency peers.

THIS WEEK IN 30 SECONDS...

The week ahead sees the latest European Central Bank (ECB) disclosure. With the back drop of Mario Draghi stepping down as President of the ECB and Christine Lagarde stepping into the hot seat from the 1st November, markets are predicting a cut in interest rates and promise of further economic stimulus.

From an economic data perspective, updated European industrial production numbers along with US inflation are due for release on Thursday, whilst US retail sales information for August are released on Friday.

EUROZONE GROWTH’S TRADE HEADWIND

Germany and France account for approximately half of the Eurozone’s GDP. With German GDP growth slipping into negative territory last quarter driven in part by slowing exports, the ECB will be keen to avoid the Eurozone’s GDP growth following suit - Bazookas at the ready!