D-PIMS Weekly Market Update - Week of 16th to 23rd September 2019
Today’s Monday Update:
Over the last week Brexit talks seemed to step-up a gear, but unsurprisingly no concrete progress was apparent:
• Last Monday the price of oil shot up 14% on news that the world’s biggest crude oil processing plant in Saudi Arabia (Khurais), had been attacked by armed drones. This caused a shutdown of 5% of Global crude oil output. Oil prices did lose some of the gains over the week when Saudi Arabia announced that shut downs will not last for as long as they first expected.
Boris Johnson met with current head of the EU Commission - Jean Claude Juncker for the first time, but only seemed to agree that discussions needed to intensify, with meetings soon to take place on a daily basis. These would be between The EU’s current Chief Negotiator, Michel Barnier and the UK’s Brexit Secretary, Steven Barclay. Conversations would also continue between President Juncker and the Prime Minister.
• On Wednesday the US Federal Reserve (Fed) followed through with a 0.25% interest rate cut, defying President Trump’s calls for at least 0.5%. Their lack of a commitment to further cuts also appeared to disappoint Markets.
• Thursday saw Jean Claude Junker sound positive for the first time, after meeting Boris Johnson and receiving ‘proposals’. He said 'We can have a deal' and 'Brexit will happen' he also confirmed that he was prepared to remove the Backstop from the withdrawal agreement – providing alternative arrangements are put in place – unsurprisingly the Pound gained.
• On Friday – Brexit Secretary Stephen Barclay headed to Brussels to meet the EU’s chief negotiator hoping to build on Junker’s encouraging tone’s.
• Over the week the world’s Stockmarkets were generally down, but Bond Markets were up. The Pound also strengthen a little. Many of the D-PIMS Portfolios saw small gains, but higher risk Portfolios in particular, saw small losses.
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The comments made above represent our interpretation of events and market views and are in no way a guarantee of future investment performance.