D-PIMS Weekly Market Update - Week 18th to 24th November 2019
Today’s Monday Update:
Trade and the General Election were centre stage over the over the last week:
• The televised debate between Corbyn and Johnson on Tuesday was predictably fruitless, as each unsurprisingly only wanted to talk about the points they wanted to make.
• On Wednesday, the mood in markets soured after the U.S. Senate passed a bill requiring annual certification of Hong Kong’s autonomy and warned Beijing against violently suppressing protesters. The measure, which angered Beijing, would require the US State Department to certify at least once a year that Hong Kong retains enough autonomy to qualify for the special U.S. trading consideration that helped it become a world financial centre. China demanded the United States stop interfering in its internal affairs and said it would retaliate.
• The Tories, Liberal Democrats and the Labour Party officially launched their Election Manifestos, even though they have been talking about much of the content for weeks.
• A welcome boost was provided to financial markets on Friday, when the leaders of the United States and China both underscored their desire to sign an initial trade deal and defuse a 16-month tariff war that has lowered global growth. Chinese President Xi Jinping, in rare comments on the trade tensions with Washington, said Beijing wants to work out an interim or ‘phase one’ trade pact.
Hours later, U.S. President Donald Trump said a trade accord with China is “potentially very close,” although he insisted that any deal would have to be weighted to favour the United States after years of trade imbalances with China.
• Over the week, the worlds Stockmarkets gave mixed results with some up and some down. Far Eastern/Asian Markets were the better performers. The D-PIMS Portfolios put in a generally positive showing.
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Past Performance is no guarantee of, or guide to future returns.
The comments made above represent our interpretation of events and market views and are in no way a guarantee of future investment performance.