Snapshot - Strategy & economics

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

US-China trade talks resume. Markets will be watching upcoming inflation data as a gauge of likely central bank action, and in the UK Brexit "warms up" ahead of next week's planned summit.

07/10/2019

Caspar Rock

Caspar Rock

Chief Investment Officer

  • Last week began badly for equities following business surveys that showed weakness in the service sector.
  • Markets recovered on Thursday and Friday with US equities outperforming. Europe lagged as it missed out on Friday's late afternoon rally.
  • Brexit is beginning to warm up: the agenda for the summit next week needs to be agreed by this Friday. 
  • Trade talks between China and the US resume. Any agreements are likely to be partial and temporary.
  • Producer and consumer price indices are out this week, and markets will watch to see whether the recent strength of the core inflation rate continues. If so, this could dampen the enthusiasm of central banks to cut rates.

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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