Our Brief Weekly Economic and World Markets Overview from Quilter Cheviot

Economic Update

by Richard Carter, Head of Fixed Interest Research

“The UK’s glorious Bank Holiday Weekend was bookended by more mixed messages from Donald Trump on trade. Following a predictable retaliation from the Chinese to his latest measures, the President decided to increase the tariffs on roughly $550bn’s worth of goods by another 5%. However, after a couple of days with global leaders at the G7, he talked up the prospect of a deal and raised hopes for further negotiations…

Market Update

By Alan McIntosh, Chief Investment Strategist

“Another week of markets being at the mercy of the tweet. US stocks fell sharply on Friday after President Trump announced higher tariffs on imports from China, then rallied on Monday when he tweeted that trade talks were back on. It seems that every time the stockmarket has a wobble, he feels obliged to “talk it up” again. For all the preamble over the G7 talks in Biarritz, nothing much happened. The Fed took it in the neck again for not slashing interest rates. “Who is our bigger enemy, J.Powell or Chairman Xi?” So blustered the “leader” of the free world fresh from pulling out of a state trip to Denmark because they wouldn’t sell him Greenland!  History books may omit references to Donald Trump because future generations would never believe what they were reading…. ”

 

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.