Please find below our Weekly Market Update for the week ending 15th November 2019.
Blue Sky Comment
Leaving Brexit aside….
After a few recent posts on UK politics, the pound and the economy we thought we should look further afield this week
Will Trump be impeached? Well, from what we’ve heard he probably should be but of course the moral compass of what is right and wrong nowadays seems to have skewed somewhat! A friend of mine who has just had a knee operation said the impeachment trial is its fascinating to watch but I don’t know about you, but I haven’t got time to watch it live. Interesting as it may be.
The US stock-market hasn’t been adversely impacted but there has been a recent movement of money away from the US into international stocks. There is also a momentum away from lower risk assets into small cap stocks on the back of increased optimism
Earlier this week the possible trade deal between the US and China hit a ‘foggy patch’ as disagreements came to the fore over Intellectual property rights and the extent to which China may purchase agricultural products. Trump in his usually way came out threatening that levies could rise if an agreement is not reached by the middle of December.
Besides economic data the major determining factor for both equities and bonds is undoubtedly what is going to happen with the trade deal. A strong degree of optimism is built into the price and a failure to progress would damage markets.
However, we have good news going into the weekend. Equities in the US have risen and US Treasuries have fallen amid rumours that both countries are closer to a trade deal than expected, earlier in the week.