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Caspar Rock: Monday markets - the week ahead on 2 September

This week promises to be an eventful one for UK politics, but markets are also watching ongoing developments in Italy and elsewhere – as well as scrutinising data for signs of US economic weakness

02/09/2019
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Authors

Caspar Rock
Chief Investment Officer
  • Expect an eventful week in UK politics following last week’s announcement that Parliament will be prorogued from 9 September until 14 October.
  • In Italy, the Five Star Movement and the Democratic Party agreed to form a coalition and Giuseppe Conte was re-appointed as Prime Minister. The new coalition is likely to be more pro-Europe than the incumbent administration, and Italian government bond yields have dropped as investors welcome these developments.
  • Equity markets rallied last week (perhaps due to less negative chat about the trade situation) with most US indices up nearly 3%.
  • This week will start quietly as US markets are closed today.
  • On Friday the US will release its employment report. The labour market looks in decent shape overall, but employment growth has slowed since the start of 2019.

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Authors

Caspar Rock
Chief Investment Officer

Topics

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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