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.
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.
A relatively calm week in markets was shattered Aug. 23 when China announced tariffs on $75 billion worth of U.S. imports, including soybeans, textiles and cars, Robison said. Stocks dropped sharply on the news, with the S&P 500® Index down roughly 2.5% at market close.
“The trade war has been one of the dominant risk factors impacting global markets basically all year, and we’re continuing to get more and more headlines,” said Eitelman. He focused on the deadline on imposing further U.S. tariffs on the final $300 billion of Chinese imports.
U.S. President Donald Trump’s Aug. 1 threat to impose 10% tariffs on the final $300 billion of Chinese imports drew a swift response from China, which devalued its exchange rate and halted all agricultural purchases from the U.S. The retaliatory measures quickly sent markets into a tailspin, with both the S&P 500® Index and the Dow Jones Industrial Average logging their steepest losses of the year on Aug. 5.
On the latest edition of Market Week in Review, Chief Investment Strategist Erik Ristuben and Research Analyst Brian Yadao discussed the recent rate cut by the U.S. Federal Reserve (the Fed) and the potential impact of additional U.S. tariffs on Chinese goods.