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

02/09/2019

Caspar Rock

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.

This article is issued by Cazenove Capital which is part of the Schroder Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

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