3 Min | Snapshot

Caspar Rock: Monday markets - the week ahead on 19 August


  • Last week saw markets particularly excited about the inversion of the yield curve (where short dated bond yields are higher than longer term ones), an historic indicator of recession.
  • This is only a leading indicator with a significant lag. Previous instances of yield curve inversion saw stronger equity markets before any recession.
  • Elsewhere markets were troubled by domestic political events in Italy and Argentina.
  • This week will bring publication of the minutes of the latest Fed meeting at the end of July (where rates were cut).
  • The G7 meet in Biarritz over the weekend, and there will be side discussions about trade and Brexit.
  • Given thin markets volatility cannot be discounted.

This article is issued by Schroders Wealth Management, which is part of the Schroder Group and a trading name of Schroder & Co. (Hong Kong) Limited, Level 33, Two Pacific Place, 88 Queensway, Hong Kong. Licensed and regulated by the Hong Kong Securities and Futures Commission. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

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