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Our Brief Weekly Economic and World Markets Overview from Quilter Cheviot

Economic Update

by Alan McIntosh, Chief Investment Strategist

“Data from the US late last week pointed to mixed fortunes for the economy. The service sector and the consumer in general remain in good health, with disposable incomes rising and confidence positive. Employment data published on Friday however, was slightly disappointing, showing a slowing rate of job creation. Meanwhile, one of the manufacturing indicators has dipped towards economic contraction, the first such signal for nearly ten years. Putting this all together suggests that the Fed will continue to cut interest rates at its next meeting…”

Market Update

By Chris Beckett, Head of Equity Research

“The possibility of a global recession is one of the main uncertainties facing equity markets at the moment. Whilst not our central forecast we have to respect the signals being given by bond market yield curve inversions and central banks pivoting back towards loosening monetary policy. We have seen weakness across the manufacturing sector – company survey data is signalling sector contraction in almost all major economies… ”

 

Investors should remember that the value of investments, and the income from them, can go down as well as up. You may not recover what you invest. This commentary has been produced for information purposes only and isn’t intended to constitute financial advice; investments referred to may not be suitable for all recipients. Any mention of a specific security should not be interpreted as a solicitation to buy or sell a specific security.