Our Brief Weekly Economic and World Markets Overview from Quilter Cheviot

MARKET OVERVIEW

by Alan McIntosh, Chief Investment Strategist

“We are in a quiet period for company news as we enter the early summer months. This leaves share prices more subject to bigger picture influences and overall sentiment. The key question is what impact the current trade tariffs and threats of more are having on real economic activity. There are specific industries that are affected e.g. automotive and semiconductor, but does this percolate more generally into consumer behaviour?”

ECONOMIC OVERVIEW

by Richard Carter, Head of Fixed Interest Research

“We are yet to see a significant weakening in the economic data as a result of the tension but bond markets are not waiting for the evidence to emerge. US Treasury yields have fallen sharply in recent days and a US interest rate cut this year is now fully discounted with the outside chance of a second, although the Fed is unlikely to rush given the strength of the jobs market…”

Investors should remember that the value of investments, and the income from them, can go down as well as up. Investors may not recover what they invest. Past performance is no guarantee of future results. Any mention of a specific security should not be interpreted as a solicitation to buy or sell a specific security.