25 February 2019
Bassanese Bites: Deadline delayed – Week beginning: 25 February 2019
It was another positive week for global equities thanks to still reasonably reassuring growth indicators, dovish Fed commentary and ongoing hopes with regard to US-China trade talks. The US S&P 500 Index lifted 0.6%, and broke above its previous key end-week closing high in early November last year (i.e before the December bloodbath). Equities are broadly enjoying an historically strong recovery after an historically strong slump last year!
With markets attentive to any signs of global slowing, it was notable that all-three key G-3 (US, Japan and Europe) global manufacturing surveys for February came in a bit weaker than expected last week, and in the case of Japan and Europe dropped below 50. America’s index was still comfortably above 50. Clearly, China’s slowdown and lingering trade tensions have taken their toll. Service sector indices, however, remained much more upbeat. Meanwhile, minutes from the latest Fed meeting again suggested that balance sheet rundown is likely to end later this year and the Committee is still unsure whether it will need to lift interest rates again.
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