Snapshot

Strategy & economics

Janet Mui: weekly economic update 10 January


Janet Mui

Janet Mui

Global Economist

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  • The US drone strike on an Iranian general rattled markets in the first week of 2020. Oil spiked higher but has subsequently surrendered its gains as the US and Iran have sought to de-escalate the situation.
  • With the US now the largest oil producer in the world, events in the Middle East have less of an enduring impact on the oil price.
  • The response of gold is a reminder of its value as a portfolio hedge against geopolitical risks.
  • UK economic activity remains subdued, though there are early signs of an improvement in sentiment following last month's election. The pound fell after Mark Carney suggested that the Bank of England would move quickly to cut rates if data did not improve.
  • The US added 145,000 jobs in December, slightly below expectations and the monthly average for 2019. Despite the softening momentum, we think the US labour market remains healthy.

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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