Market Update

Markets update: Global growth slowed

By Business & Finance
10 February 2020
chart stock markets down reduce

Economic data supported investor sentiment last week with all major global markets recording gains after a difficult start to the year. Ian Slattery reports.

Hopes emerged that the global economy would prove resilient in the face of the coronavirus outbreak centered in China.


Ian Slattery, Investment Communications, Zurich Life

US employers added 225K new workers to their payrolls in January, which handily beat expectations, but the manufacturing sector shed jobs for the third time in four months, and net layoffs were reported for finance and retail as well. The overall trend in levelling job gains is in keeping with an economy that’s expected to grow modestly in 2020.

“Global markets rebounded last week, up by 2.3% in local terms and 3.1% in euro terms”

Encouraging signals appeared in other manufacturing data. For the first time in six months, the ISM was not in contraction territory in January. A first step toward de-escalation in the trade war helped, but coronavirus worries are not yet showing up in these numbers. The ISM manufacturing index came in at 50.9 in January after touching the lowest level since the recession in December.


Global markets rebounded last week, up by 2.3% in local terms and 3.1% in euro terms. The influential US market was up by 2.3% in local terms and 3.4% in euro terms.

Fixed Income & FX

The US 10-year yield finished at 1.57% last week. The German equivalent finished at -0.40%. The Irish 10 year bond yield finished at -0.12%. The Euro/US Dollar exchange rate finished at 1.09, whilst Euro/GBP finished at 0.85.


Oil fell back finishing the week at $50 per barrel. Gold decreased to $1,572 per troy ounce and copper increased to $5,648 per tonne.

The week ahead

Tuesday 11th February:

  • UK GDP numbers for Q4 are published

Thursday 13th February:

  • January inflation figures from US go to print

Friday 14th February:

  • Q4 GDP growth figures for the Eurozone are released

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