Markets mixed

Equities move higher as market worries fail to sway sentiment, writes Ian Slattery. Meanwhile all eyes are on the UK as stocks continue to be influenced by Brexit and political events in Westminster.

As expected, markets saw a US rate cut of 25bps at the Fed’s September meeting, with the key rate now standing at 1.75-2.0%. However, the Federal Open Market Committee (FOMC) which makes the call, were split on whether to go ahead or not. It now also looks like a further cut may not happen in 2019, something which has previously begun to look like more of a probability.

The Fed was also active in the lesser known ‘repo’ rate market, having to shore up the operation of the overnight banking facility midweek.

Stocks started the week with a literal bang, as an attack on a Saudi Arabian oil site raised tensions in the gulf and saw the oil spike the most since the early 90s.

In other policymaker activity, both the Bank of Japan and the Bank of England signalled no significant changes at their respective meetings during the week

Equities

Equities decreased slightly in euro terms last week, by - 0.1%, and increased slightly by 0.1% in local terms..

Fixed Income & FX

The U.S. 10-year yield recovered further last week to finish at 1.70%. The German equivalent is now at -0.57%.  The Irish 10 year bond yield is at -0.02%. The Euro/U.S. Dollar exchange rate finished at 1.10, whilst Euro/GBP was at 0.89.

Commodities

Oil finished the week higher at $58 per barrel. Gold finished the week at $1,518 per troy ounce. Copper decreased to $5,770 per tonne.

The week ahead

Monday 23^rd September:

Composite PMI data for the Eurozone is announced.

Thursday 26^th September:

US GDP estimates are released to market.

Friday 27^th September:

Personal Consumption figures from the US go to print