Market Week in Review: Does the latest U.S. inflation report strengthen the case for another rate cut?
The latest round of trade negotiations between the U.S. and China kicked off Oct. 10 in Washington, D.C. So far, the talks have been positive, Robison noted, with the possibility that the U.S. will scrap a planned Oct. 15 tariff increase on Chinese goods. In addition, China may commit to purchasing more soybeans from the U.S., and the two nations may also strike a deal that would prevent currency devaluation.
The Institute for Supply Management (ISM)’s manufacturing purchasing managers’ index (PMI) slipped to a level of 47.8 in September, further extending the U.S. manufacturing sector’s slide into contraction. A reading below 50 indicates contractionary conditions, Robison noted, adding that the manufacturing sector had already dipped below 50 in August.
The recent dislocation in the market for repurchase agreements (known as the repo market) not only caught the attention of market participants, it prompted market intervention by the New York Federal Reserve. Peter Yi, director of short duration fixed income, explores the issue.
Equity and bond markets were both relatively calm the week of Sept. 23, Ristuben noted. He chalked up the lack of market volatility to conflicting signals painted by a slew of recently released economic data points.
Markets widely expected another Fed rate cut, and the central bank didn’t disappoint, lowering interest rates by 25 basis points to a target range of 1.75% to 2% on Sept. 18, Ng said. What was less expected, she noted, was the level of dissent among Federal Open Market Committee (FOMC) members.
The European Central Bank announced aggressive moves last week to fight slow growth and low inflation. Chief Investment Strategist EMEA & APAC Wouter Sturkenboom gives our take on what this means for investors globally.
On the latest edition of Market Week in Review, Senior Investment Strategist Paul Eitelman and Head of AIS Business Solutions Sophie Antal Gilbert discussed the European Central Bank (ECB)’s new stimulus package, positive developments in the China-U.S. trade war and the recent rise in value stocks.
Chief Investment Strategist Jim McDonald gives an inside look into our new Capital Market Assumptions research, which identifies the key investment themes to watch and how they translate into asset class returns for the next five years.
On the latest edition of Market Week in Review, Mark Eibel, director, client investment strategies, and Rob Cittadini, senior director, U.S. institutional, dug into the recently released U.S. employment report for August. They also chatted about the likelihood of a U.S. Federal Reserve (the Fed) rate cut later this month, as well as the latest developments surrounding Brexit.
On the latest edition of Market Week in Review, Quantitative Investment Strategist Abraham Robison and Research Analyst Brian Yadao discussed the escalating China-U.S. trade war, recent remarks from U.S. Federal Reserve (the Fed) Chair Jerome Powell and U.S. manufacturing PMI (Purchasing Managers’ Index) data for August.