SNAPSHOT2 min read

Caspar Rock: Monday markets - the week ahead on 7 October

US-China trade talks resume. Markets will be watching upcoming inflation data as a gauge of likely central bank action, and in the UK Brexit "warms up" ahead of next week's planned summit.

07/10/2019
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Authors

Caspar Rock
Chief Investment Officer
  • Last week began badly for equities following business surveys that showed weakness in the service sector.
  • Markets recovered on Thursday and Friday with US equities outperforming. Europe lagged as it missed out on Friday's late afternoon rally.
  • Brexit is beginning to warm up: the agenda for the summit next week needs to be agreed by this Friday. 
  • Trade talks between China and the US resume. Any agreements are likely to be partial and temporary.
  • Producer and consumer price indices are out this week, and markets will watch to see whether the recent strength of the core inflation rate continues. If so, this could dampen the enthusiasm of central banks to cut rates.

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Authors

Caspar Rock
Chief Investment Officer

Topics

UK
US
Monetary policy
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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