Author — Martin Young, CEO of Farringdon Asset Management

Global Macro Review

US Markets

• S&P 500 reached all time high levels on Thursday, up 1.7%.
• The Fed cut interest rates by 0.5% in a surprise move on Wednesday.
• The size of the cut may cause speculation the US economy is heading for a recession.
• Powell mentioned that he still expects a soft landing and do not see any downturn coming.
• The stock market took a breather Friday after equities rallied to record highs Thursday on the Fed’s supersized rate cut earlier in the week.
• The Dow Jones Industrial Average eked out a 0.1% gain to close at a record high for the second consecutive session.
• The S&P 500 slid 0.2% from its own record high.
• The Nasdaq Composite has dipped about 4% off its all-time high.
• All three indexes advanced about 1.5% over the week.
• Broad market performed well, and tech stocks sold off.
• Falling dollar is likely to be a theme for several non-US based companies.

UK Markets

• FTSE 100 dropped on Friday after higher-than-expected retail sales caused the pound to rise.
• The BOE held rates steady, not matching cuts from the federal reserve.
• European Stocks remain muted with Euro Stoxx 600 2% below August high.

Chinese Markets

• China has announced plans for a rare briefing on the economy by its 3 top financial regulators.
• Markets are expecting announcements on lower rates and more stimulus.
• This may boost China stocks in the short term. However, outlook remains poor.

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