Equities stay strong
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.
Equities started the month strongly last week, with all major markets in positive territory. This was in spite of a poor US jobs data reading, which trended downwards as trade tensions and the talk of a potential recession hit non-farm payrolls data.
Employers added 130,000 jobs in August with the 12 month average down to 173,000 – from 235,000 in January. Manufacturing data also disappointed, with the ISM index falling below 50 (signalling a contraction) for the first time since 2016.
Chinese export data moved lower as the imposed tariffs begin to bite, however the US has confirmed the next round of trade talks with China – which will take place in Washington next month.
UK and Irish stocks continued to be heavily influenced by Brexit events in Westminster, which evolved at a hectic pace last week. The situation is liable to change further throughout the week ahead, with Prime Minister Johnson in Dublin for talks this morning, and further votes scheduled for Westminster. However, wider assets continue to be more influenced by global factors, including the aforementioned tariff tensions and macroeconomic prospects.
|
|
1 Week Return 02.09.19 to 09.09.19 |
Year to Date Return 01.01.19 to 09.09.19 |
||
|
|
Local Currency |
Euro |
Local Currency |
Euro |
|
World |
2.0% |
1.2% |
15.7% |
19.7% |
|
US |
1.8% |
1.2% |
19.0% |
23.7% |
|
Europe |
1.8% |
1.8% |
16.8% |
16.8% |
|
Ireland |
1.6% |
1.6% |
17.6% |
17.6% |
|
UK |
0.0% |
1.6% |
7.5% |
7.9% |
|
Japan |
2.3% |
1.0% |
4.1% |
11.0% |
|
Hong Kong |
5.0% |
4.4% |
4.7% |
8.6% |
|
Corporate Bonds |
-0.6% |
-0.6% |
6.9% |
6.9% |
|
Sovereign Bonds |
-0.5% |
-0.5% |
15.1% |
15.1% |
Equities
Equities started the month strongly last week, increasing by 1.2% in euro terms, and 2.0% in local terms. All major markets were in positive territory.
Fixed Income & FX
The US 10-year yield recovered slightly last week to finish at 1.59%. The German equivalent is now at -0.60%. The Irish 10 year bond yield is at -0.01%. The Euro/US Dollar exchange rate finished at 1.10, whilst Euro/GBP was at 0.89.
Commodities
Oil finished the week higher at $57 per barrel. Gold finished the week at $1,509 per troy ounce. Copper increased to $5,809 per tonne.
The week ahead
Tuesday 10th September:
Chinese inflation data is released to the market, and is forecast to rise.
Wednesday 11th September:
The ECB meets for its latest decision on interest rates.
Thursday 12th September:
The ECB meets for its latest decision on interest rates.
US inflation data goes to print, with a slight rise in the core figure expected.
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