Snapshot - Strategy & economics
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
- 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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