Week ending 3rd January 2020.

Global equity markets started 2020 on a happy note after Donald Trump said he will sign the first phase of the US/China trade deal on Wednesday 15 January 2020, coupled with news that the Chinese central bank, the PBOC, was reducing the required reserve ratio (RRR) by 50 basis points (which underscores our view that the world’s major central banks remain easing-biased).

Unfortunately, this festive feel-good cheer came to an abrupt end today (Friday 3 January 2020), as geopolitical tensions escalated between the US and Iran after US airstrikes in Iraq killed Qassem Soleimani, a top Iranian military leader.

The death prompted Iran to warn of “severe retaliation”, causing equity markets to fall and oil prices to jump – and with the price of a barrel of Brent crude back to nearly $70, this could, if sustained, hurt the global consumer and as a result, impact global economic growth.

As for this coming week we have Eurozone retail sales, CPI and unemployment data; and Chinese CPI.

Investment Management Team

The latest market updates are brought to you by Investment Managers & Analysts at Wealth at Work Limited which is a member of the Wealth at Work group of companies.

Links to websites external to those of Wealth at Work Limited (also referred to here as 'we', 'us', 'our' 'ours') will usually contain some content that is not written by us and over which we have no authority and which we do not endorse. Any hyperlinks or references to third party websites are provided for your convenience only. Therefore please be aware that we do not accept responsibility for the content of any third party site(s) except content that is specifically attributed to us or our employees and where we are the authors of such content. Further, we accept no responsibility for any malicious codes (or their consequences) of external sites. Nor do we endorse any organisation or publication to which we link and make no representations about them.