European indices fall; China’s GDP growth slows down; EU considering concessions to avoid no-deal Brexit

16 July 2019

European indices fall; China’s GDP growth slows down; EU considering concessions to avoid no-deal Brexit

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Market news

Global markets were mixed last week as investors digested dovish central bank commentary and new economic data. The S&P 500 rose 0.8% and ended the week at a record high, riding momentum provided by some stronger-than-expected second-quarter earnings releases. European indices, however, were less optimistic in the face of apparent risks to global growth. The Euro Stoxx 600 fell 0.8% and the FTSE 100 ended the week down 0.6%.
 
Equity markets have nudged broadly higher this week but are muted, with plenty of focus on fraying international relationships between political leaders. US-China trade talks remain the fulcrum of market narrative and reports suggest that senior US officials could travel to Beijing if talks go well this week.
 
The Chinese economy grew at the slowest rate in 27 years in the second quarter, registering 6.2% year-on-year compared to last year. China’s GDP growth has been losing momentum owing to a weakening global economy and higher US tariffs, leading to Donald Trump gloating about the impact of his trade policies.
 
Meanwhile, Trump has come under fire for suggesting four American congresswomen from minority backgrounds should “go back” to where they came from. The President has been criticised by international leaders, including both candidates for Downing Street. Boris Johnson called the language used “totally unacceptable”.
 
With a week to go until the UK has a new Prime Minister, reports have emerged that the EU is considering potential concessions to offer in order to avoid a no-deal Brexit. EU officials expect negotiations to become more hostile and withheld some bargaining tools when it realised Theresa May was unlikely to get any deal through Parliament.
 
Finally, oil prices rose sharply last week amid supply-side pressures. A tropical storm in the Gulf of Mexico had a significant impact on production, while tensions continued to intensify in the Middle East. Brent crude oil ended the week up 3.9%, before falling back slightly yesterday. 

 

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European indices fall; China’s GDP growth slows down; EU considering concessions to avoid no-deal Brexit

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Investors should be aware that past performance is not a reliable indicator of future results and that the price of shares and other investments, may fall as well as rise and the amount realised may be less than the original sum invested.


Walker Crips Group plc (Old Change House, 128 Queen Victoria Street, London EC4V 4BJ), registered in England, registered number 1432059, incorporates the following companies which are authorised and regulated by the Financial Conduct Authority: Walker Crips Investment Management Limited registered in England number 4774117 member of the London Stock Exchange, Walker Crips Wealth Management Limited registered in England number 3790291, Ebor Trustees Limited registered in England number 3514268, Barker Poland Asset Management LLP registered in England and Wales number OC341149.