The impeachment inquiry into U.S. President Donald Trump and the ongoing protests in Hong Kong have made headlines for the past few weeks, but Ng said neither is likely to have much of an impact on global markets.
The ongoing trade spat between the U.S. and China has been a rollercoaster ride of ups and downs, Ristuben said. He characterized the week of Nov. 4 as an up week, due in part to comments from the Chinese government that the two countries may be close to reaching an agreement to roll back existing tariffs on each other’s goods.
Fresh off the heels of 25 basis-point rate cuts in July and September, the Fed lowered borrowing costs by another quarter of a percentage point on Oct. 30, dropping its benchmark rate to a target range of 1.50% to 1.75%. “The Fed has really been pushing back against the global economic slowdown driven by trade uncertainty between the U.S. and China,” Eitelman remarked, “and with this latest cut, it’s clear the central bank now feels it’s provided enough accommodation to counter-balance these risks.”
UK Prime Minister Boris Johnson successfully negotiated a draft divorce agreement with the European Union (EU) on Oct. 17, setting up a critical vote in Parliament on Oct. 19. The agreement with the EU effectively allows UK member Northern Ireland to stay in a common customs union, and prevents a hard border with the Republic of Ireland, an EU member.
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.
Have you ever done an inventory of the products that you use every day? I recently did this exercise and was shocked by the domicile of the parent companies.
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.
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.
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.
Russell Investments has crossed an important milestone with our Tax-Managed Model Strategies. We now have a 15+ year track record to talk about. One thing is very apparent: taxes are hard and the differences between approaches vary wildly.