World Themes This Week
We’re up and at it this week with some movements in the US-China trade war, turkey’s political scene and the currency markets catching investors’ attention. Welcome to March, people, let’s kick it off with a bang.
The most recent developments in the trade war have seen China extend its suspension of retaliatory tariffs on US autos, signalling further goodwill and intent to wrap up a deal in the not too distant future…hopefully. Investors will be on the look out for positive signs of progress which could boost market sentiment throughout the week and provide a nice cushion for equities in particular.
In the Turkish election saga, President Erdogan, suffered his first major electoral setback in almost a decade and a half in power – say what?! A loss of influence in two major cities, Istanbul and Ankara, has shown a slight vulnerability in his traditional power base, opening the door for future challengers. The Lira dipped 2% lower against the dollar and may be set for more weakness and volatility towards the end of the week.
As Brexit runs ever closer to a no-deal deadline, President Trump has articulated his eagerness to dive into a post-Brexit bilateral trade agreement with the UK, downplaying the effects of a no-deal catastrophe. The comments provided a small sense of relief for UK investors, but with another week of voting ahead, that optimism may be replaced by more of the previous doom and gloom.
The S&P 500 had a bumpy ride last week, but closed up 1.60% – well above key support at $2,800. After a higher open in Asian markets, the US may well follow suit on a greater sense of optimism around trade.
Gear up for another big week!
