Markets fall from record high, as monetary policy and trade deal expectations shift, and news on the trade deal were also mixed, writes Ian Slattery.
A slight shift in monetary policy expectations, coupled with mixed news on the trade front, saw stocks fall for the first time in seven weeks, after hitting an all-time high last Monday.
The latest minutes from October’s Federal Reserve meeting suggest that the Central Bank for the world’s biggest economy might be content to remain on the side-lines for the rest of the year.
News on the trade front was also mixed, however, China announced over the weekend that it would look to raise the penalties for violations of intellectual property rights.
The most recent PMI data from the Eurozone was mixed with a rise in the manufacturing figure, met with a fall on the services side. The UK also saw a rise in manufacturing PMIs, (albeit to a level still below the key midpoint reading of 50) while the services component fell to its lowest level since July 2016, which was just after the Brexit referendum.
Global equities fell last week for the first time in seven weeks. Ireland was down slightly over the week but showing strong YTD returns of 30.2% (local currency).
Fixed Income & FX
The US 10-year yield finished at 1.79% last week. The German equivalent finished at -0.35%. The Irish 10 year bond yield finished at 0.09%. The Euro/US Dollar exchange rate finished at 1.10, while Euro/GBP was at 0.86.
Oil finished the week at $58 per barrel. Gold finished the week at $1,458 per troy ounce. Copper increased to $5,837 per tonne.
The week ahead
Tuesday 26th November:
The latest US consumer confidence readings is released.
Thursday 28th November:
US markets are closed for Thanksgiving.
Friday 29th November:
Eurozone unemployment and CPI readings go to print.