Markets grinded higher last week as Quarter 3 earnings season kicked off with announcements from the big U.S. financials. Tech firms take the limelight this week with the likes of Amazon, Microsoft and Twitter all reporting.
Economic data came in largely below expectations this week, as evidence of a broadening slowdown begins to mount. On the other hand, the probability of a U.S. interest rate cut at next week’s Federal Open Market Committee meeting continues to rise, partly on the back of the weakening data. Chinese Quarter 3 GDP growth slowed, albeit to a still strong 6%. However, the market response was muted as lower, more sustainable, growth has been an explicit policy aim of the Chinese authorities in recent times.
A Brexit deal (in theory) was struck late last week and there will most likely be fast moving developments over the coming days. In wider European politics, Swiss elections results were as expected and saw strong gains for the Greens, in line with the environmentalist movement seen across Europe. READ MORE