Markets higher as phase one trade deal signed
The terms were broadly in line with expectations and included commitments from China to purchase US goods and services worth over $200bn over the next two years. The Senate also passed the United States-Mexico-Canada Agreement (USMCA) trade deal, and positive economic data also helped lift sentiment.
New home construction in the US surged 16.9% in December (the highest level since 2006) whilst U.S. financials kicked off the Q4 earnings seasons. Morgan Stanley grabbed the headlines with impressive profit and revenue numbers, whilst Goldman Sachs saw a more mixed reaction to their release.
More big names such as Netflix, Johnson & Johnson, and Intel are all set to report this week, as earnings is set to take much of the focus in the coming weeks.
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|
1 Week Return 13.01.20 to 20.01.20 |
Year to Date Return 31.12.19 to 20.01.20 |
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|
|
Local Currency |
Euro |
Local Currency |
Euro |
|
World |
1.1% |
1.5% |
2.4% |
3.6% |
|
US |
1.2% |
1.7% |
3.2% |
4.3% |
|
Europe |
1.5% |
1.5% |
2.4% |
2.4% |
|
Ireland |
-0.7% |
-0.7% |
-1.2% |
-1.2% |
|
UK |
0.8% |
1.2% |
1.8% |
0.9% |
|
Japan |
0.2% |
0.5% |
1.2% |
0.9% |
|
Hong Kong |
1.5% |
2.0% |
5.2% |
6.7% |
|
Corporate Bonds |
0.4% |
0.4% |
0.2% |
0.2% |
|
Sovereign Bonds |
-0.1% |
-0.1% |
0.4% |
0.4% |
Equities
Influential US stocks led equity markets higher last week. Hong Kong was the strongest market delivering returns of 1.5% in local terms and 2.0% in euro terms.
Fixed Income & FX
The US 10-year yield finished at 1.82% last week. The German equivalent finished at -0.21%. The Irish 10 year bond yield finished at 0.06%. The Euro/US Dollar exchange rate remained at 1.11, whilst Euro/GBP was at 0.85.
Commodities
Oil fell back slightly finishing the week at $58 per barrel. Gold finished the week at $1,560 per troy ounce. Copper increased to $6,247 per tonne.
The week ahead
Tuesday 21st January:
- No change in interest rates are expected as the Bank of Japan meets.
Thursday 23rd January:
- The ECB meets for its first interest rate decision of the year.
Friday 24th January:
- Eurozone manufacturing and services PMI for January go to print.
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