Snapshot - Strategy & economics
Janet Mui: weekly economic update 11 October
There are signs of progress on the two key political risks facing markets: the US-China trade war and Brexit.
- Investors cheered news that senior negotiators from the US and China would meet for the first time since July to discuss a trade deal.
- With global economic data continuing to weaken, we believe that a comprehensive trade deal is essential to revitalise economic growth.
- Monthly GDP data for August suggests the UK will narrowly avoid a technical recession. We expect weak but positive growth in the third quarter.
- Late in the week, sterling and UK domestic equities rallied after Boris Johnson and Leo Varadkar said they could see a “pathway” to a Brexit deal.
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.