Strategy & economics

Caspar Rock: Monday markets - the week ahead on 7 May

Renewed trade tensions between the US and China have caused a spike in market volatility while continued Brexit uncertainty keeps the Bank of England on hold

06/05/2019

Caspar Rock

Caspar Rock

Chief Investment Officer

  • Data released in the US last week showed strong employment and muted inflation. Federal Reserve Chairman Powell said “solid fundamentals” are supporting the economy and that temporary factors might be holding inflation down.  
  • A breakdown in trade negotiations between China and the US caused a jolt in markets...we expect to see more volatility.
  • The latest PMIs from Europe continued to show strength in France and Germany and continued weakness in Spain and especially Italy - this continues to be a concern.
  • Brexit negotiations are due to restart this week - the BOE is likely to keep rates on hold until there is more clarity.

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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