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Ahmet Feridun: Monday markets - the week ahead 4 November 19

Markets are buoyed by broadly positive data and the Federal Reserve's rate cut. In Europe, Germany may have slipped into a technical recession. Uber and Disney to report this week, among others.

04/11/2019
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Authors

Ahmet Feridun
Deputy Chief Investment Officer
  • Last week was a good one for equities with data on balance more positive, trade talks seemingly going in the right direction, an election finally called in the UK and a Federal Reserve rate cut.
  • The S&P 500 advanced 1.5% with semiconductors leading gains, whilst the Nasdaq gained 1.7% to a new record.
  • The Fed cut rates by a quarter of a percentage point but chair Jerome Powell indicated that the bar to further action had been raised.
  • October’s US employment data suggests the job market remains strong. Inflation data was weaker than expected.
  • In Europe, preliminary data showed overall growth during the third quarter, but Germany’s GDP growth was flat. There is a possibility that subsequent estimates of GDP will show Germany has slipped into a technical recession.
  • UK news is dominated by pre-election campaigning. There was evidence of inventory build-up ahead of the 31 October Brexit deadline, which may impact on future GDP numbers.

Week ahead

  • The US corporate earnings season continues with companies such as Uber, Disney and Qualcomm reporting their third quarter numbers.
  • To date 359 of the S&P 500 index companies have reported, with over 60% of those reporting beating consensus revenue estimates and 80% beating consensus earnings.

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Authors

Ahmet Feridun
Deputy Chief Investment Officer

Topics

UK
Monetary policy
Brexit
Snapshot
Economic & Strategy Viewpoint
Video
Market views

Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at 40 Esplanade, St. Helier, Jersey JE2 3QB, (No.31076).

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