Equities started the month strongly last week, with all major markets in positive territory. This was in spite of a poor US jobs data reading, which trended downwards as trade tensions and the talk of a potential recession hit nonfarm payrolls data. Employers added 130,000 jobs in August with the 12 month average down to 173,000 – from 235,000 in January. Manufacturing data also disappointed, with the ISM index falling below 50 (signalling a contraction) for the first time since 2016. Chinese export data moved lower as the imposed tariffs begin to bite, however the US has confirmed the next round of trade talks with China – which will take place in Washington next month.

UK and Irish stocks continued to be heavily influenced by Brexit events in Westminster, which evolved at a hectic pace last week. The situation is liable to change further throughout the week ahead, with Prime Minister Johnson in Dublin for talks this morning, and further votes scheduled for Westminster. However, wider assets continue to be more influenced by global factors, including the aforementioned tariff tensions and macroeconomic prospects.

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