Snapshot - Economic & Strategy Viewpoint
Caspar Rock: Monday markets - the week ahead on 5 August
Last week saw a sell-off following an escalation in the US-China trade stand-off and "disappointing" commentary from the Federal Reserve. Volatility looks set to persist.
- The upcoming week is light on newsflow but it follows a volatile week for bonds, equities and currencies.
- Last week’s Fed rate cut, coupled with a further escalation in the US-China trade stand-off, resulted in a sharp sell-off.
- US equities ended the week 3% lower and European equities were down by about 4%.
- UK asset volatility continues with markets pricing in a higher probability of either a general election or hard Brexit.
- Today’s global PMI (Purchasing Managing Index) data will be closely watched following last month’s divergence between weaker manufacturing and stronger services figure.