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AUTHOR: Jason J. Roque, CFP®, APMA®
TITLE: Investment Adviser Rep – CCO TAGS: OIL, CENTRAL BANK, TRADE, BREXIT |
Markets were little changed last week. It appeared as if investors were indifferent about the data and geo-political activity of the week.
Trade Tizzy
Discussions between senior US and China official will resume in October. This kicks off talks that have been stalled for months. There is hope that a minor deal can be reached to prevent US tariffs in October and December. Firms were also optimistic about a deal in April and that did not pan out. They are set to meet the 10th and 11th, so more to come that week.
Trade Accord
A deal, albeit minor was announced last week between the US and Japan. The deal offers greater access to Japans automotive sector and an increase in purchasing of US agricultural goods. It was announced at the UN meetings held last week.
Brexit Already
The UK’s Supreme Court determined that Prime Minister, Boris Johnson, unlawfully suggested the closure of Parliament to Queen Elizabeth II. The decision recalled parliament to session. No closer to a Brexit deal, the current expectation is further extension, likely to year end.
Making Enemies
A formal inquiry has been initiated into the impeachment of President Trump. Markets did not overreact to the announcement and historically that seems accurate. When President Clinton was impeached by congress markets lost ground shortly, but actually had a stellar year. The lack of Senate support could cause parallels in this case. The focus on impeachment has removed (for now) scrutiny on big tech anti-trust investigations. This should boost sentiment for these companies, at least in the short run.
Conclusion
There was not much of a market reaction to the above data this last week. Surely some of it would have stressed the markets. Economic data, conversely, was fair, which may have offset some of the geo-political risks in the air.
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