View of London representing uk economic outlook

Our Brief Weekly Economic and World Markets Overview from Quilter Cheviot

Economic Overview

by Richard Carter, Head of Fixed Interest Research

“The US and China have agreed a ‘phase one’ trade deal which should be signed by both sides in early January. This has averted another round of increased tariffs which is good news for the global economy but it looks like much of the thornier issues have been left for ‘phase two’. There has also only been a partial rollback of existing tariffs – there remains a 25% levy on goods worth $250bn and a 7.5% tariff on goods of $120bn. We expect trade tensions and the threat of protectionism to linger on…”

Market Overview

By Alan McIntosh, Chief Investment Strategist

“The victory for Boris Johnson and the UK Conservative Party was largely anticipated by markets (sterling made most of its upward move weeks before the election) but the scale of the win was not. A rally in domestic-focused shares such as utilities, financials and housebuilders on Friday largely reflected the reduced political risk over the next few years resulting from such a commanding majority… ”