Houses of Parliament and Big Ben to represent London and UK

Our Brief Weekly Economic and World Markets Overview from Quilter Cheviot

WORLD MARKET OVERVIEW

by Chris Beckett, Head of Equity Research

“The increased chance of a ‘double no deal’ scenario – no agreement between China and the USA or between the UK and EU – has increased the probability of trade restrictions reducing corporate profits in the future. Whilst our central view is for continued global economic expansion that would justify higher equity valuations events around Brexit, US-Chinese tariffs, protests in Hong Kong, military tension in the Gulf and several other events temper our enthusiasm at present…”

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ECONOMIC OVERVIEW

by Richard Carter, Head of Fixed Interest Research

“The latest economic news from the UK made for pretty grim reading, with Q2 recording the first quarter of negative growth since 2012. This was mainly driven by the unwinding of stockpiles built up ahead of the Brexit-that-never-was at the end of March, but construction and exports were also weak. In all likelihood, the UK will avoid entering a technical recession because there will now be another build-up of stockpiles ahead of October 31st while consumers still remain in good shape…”

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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.