MARKETS CONTINUE TO GROW

Stockmarkets across the globe have continued to rise since the beginning of the year. In the US, the Federal Reserve – their equivalent of the Bank of England – continued to say they would remain patient on potentially raising interest rates further which boosted the economy. This also boosted several other countries whose markets are closely linked to the dollar.

WHERE DOES TRUMP TURN HIS ATTENTION AFTER CHINA?

Trade talks between the US and China continue to progress, however Trump’s ‘America First’ trade agenda continues to worry financial markets. It’s expected his attentions will turn to foreign-made cars once the China deal is finalised which Europe, Germany in particular, would bear the brunt of.

THE B WORD

 In the UK, all roads again lead to Brexit. The Government were defeated on a number of votes, including one where the Prime Minister voted against her own amendment! The one vote which has passed in the last few weeks is an agreement to delay Article 50 beyond the 29th March. This now needs agreement by the EU which we expect them to vote on shortly. Despite this, UK Equity markets continued to grow as investors’ further rule out the likelihood of leaving the EU with No Deal

The market is predicting a low level of growth, but we do believe there are some reasons for positivity. We began the year supportive of stocks. However, we’re becoming more cautious as the year progresses. The main risks still come from Brexit uncertainty in the UK, the possibility of trade talks between and US and China being derailed, in addition to the US central bank raising interest rates if markets grow too quickly.