Market Update

News this past week:

  • Macron becomes youngest ever elected French President
  • Strong April jobs report points to robust US labour market
  • Eurozone economy grows 0.5% in first quarter
  • Greece agrees bailout terms with creditors
  • Volatile week for commodity prices

Macron

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US dollar on the back foot

dollarsAs Trump voiced his concerns over the apparent ‘bunch of bad hombres down’ in Mexico, the less sensational Fed voted unanimously to keep rates on hold and gave little indication of a hike at the next meeting in March. Comments included ‘some further strengthening’ in the labour market, increasing inflation, albeit still below the central bank’s target, and ‘soft’ business sentiment.

One thing you cannot say about Trump is, unlike many politicians globally, he has followed through with some of his main campaign promises, albeit some more recent actions are deemed controversial by many. We suspect the broadly dovish Fed members will act on a wait-and-see basis, as there has been little to no guidance from the Trump administration with respect to fiscal policy deployment and the consequent effects on US growth. The futures market is pricing in over a 70% chance of a hike in June.

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Weekly Market Update

News this past week:

  • US economic growth disappoints as Dow Jones reaches 20,000
  • Trump’s executive orders fail to stir markets
  • UK High Court: Parliament must vote to trigger Brexit
  • UK economy grows 0.6% in Q4
  • Weaker yen boosts Japanese exports

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Weekly Market Update

News this past week:

  • Dollar strengthens as market prepares for Fed rate hike
  • Inflation expectations rise in the UK
  • Bond yields rise amid tapering rumours
  • Chinese trade data disappoints, whilst inflation rises
  • Eurozone industrial production beats expectations

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