China and USA handshake

Our Brief Weekly Economic and World Markets Overview from Quilter Cheviot

MARKET OVERVIEW

by Alan McIntosh, Chief Investment Strategist

“Last week was quite an extraordinary one, even for markets which rarely cease to surprise. Government bond yields hit an all-time low (at least in Europe) while the US stock market climbed to a fresh all-time high. Gold, which is meant to be a hedge against inflation and risk generally, rose to a six-year peak, despite inflation expectations falling and risk assets going up in value. All makes sense? I thought so…”

ECONOMIC OVERVIEW

by Richard Carter, Head of Fixed Interest Research

“The focus this week should be on the G20 summit in Japan which starts on Friday, and especially the expected meeting between President Xi and President Trump. Probably the best we can hope for is that the two sides agree to continue negotiating to resolve the trade dispute because a comprehensive deal looks a way off. Any breakdown in talks could lead to tariffs on another $300bn of Chinese goods and a further hit to the global economic outlook…”

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.