Monthly viewpoint

Janet Mui: weekly economic update 7 February

Janet Mui

Janet Mui

Global Economist

  • Chinese markets fell sharply at the start of the week. They recovered modestly after the government and central bank announced supportive measures. 
  • These included short-term interest rate cuts, liquidity injections and tax cuts for companies impacted by the epidemic. Authorities have also halved the tariff rate imposed on US imports into China.
  • The US added 225,000 jobs in January, significantly exceeding economists’ expectations and taking the three month average above 200,000. Wage growth is now running at 3.1%. In US election years, the strength of the employment market has historically been a good indicator of an incumbent president’s chances of re-election.
  • Eurozone industrial activity remains weak, according to recent data. German industrial production fell close to 7% over 2019, the weakest performance since the financial crisis. In France, public sector strikes took a toll on manufacturing.
  • We do not expect an improvement in the first quarter, given the impact of the coronavirus on global supply chains. Once the virus is contained, however, we expect that the trade agreement between the US and China will lead to some improvement in the second quarter.



For Accredited Investors Only. This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument and is not intended to provide and should not be relied upon for accounting, legal or tax advice, or investment recommendations.

The information in this market outlook is derived from sources which we consider to be reliable. However, it may not in all cases be verified independently and we do not attest to its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Forecasts may be the consensus of extremely divergent possibilities and the full range of potential outcomes should be appreciated. No representation or warranty is made that any value (or proximity to) any value, return or forecast will be achieved. The opinions expressed are those of employees of Schroder & Co. (Asia) Limited, and reflect their judgement at this date and are subject to change. Reliance should not be placed on the views and information in this market outlook when taking individual investment and/or strategic decisions. 

No part of this document may be reproduced in any manner without the prior written permission of Schroder & Co. (Asia) Limited.

Contact Schroders Wealth Management

To discuss your wealth management requirements, or to find out more about our services, please contact:

Jasper Lai

Jasper Lai

Head of Client Advisory