Mixed earnings reports reinforce Fed’s wait-and-see approach
Q3 earnings season is still in its infancy, but already there are signs to be read from them, says Twentyfour Asset Management’s Gary Kirk, especially in terms of next week’s FOMC meeting.
Macro News
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China GDP surprise does little to lift markets
China announced higher than expected gross domestic product growth of 6.9% overnight, but markets in the United Kingdom and elsewhere in Europe were unimpressed.
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Harris: Unwind of long dollar trade will be “violent and sustained”
A weakened dollar will be a boon for commodities, despite ever present deflationary threats in the global economy, according to City Financial’s Mark Harris.
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China’s middle class now largest worldwide
Funds that focus on China consumption are among those that should benefit from the expanding Chinese middle class, which has overtaken the US to become the world’s largest.
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UK unemployment drops to seven-year low
The United Kingdom’s unemployment rate has dropped to a seven-year low of 5.4%.
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Slip into deflation raises chances of ECB QE extension
Eurozone prices fell by 0.1% in September from a year earlier, reversing a 0.1% increase the previous month.
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Manufacturing weakness adds to BoE woes
Growth in UK manufacturing output stalled for the first time in two years the latest Industrial Trends survey from the Confederation of British Industry showed.
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Saracen: Rio Tinto among winners in a ‘fragile’ growth world
Global growth, albeit slow, will benefit more economically sensitive companies over the next three to five years, while the likes of Rio Tinto and BWM will be significant winners, according to Saracen Fund Managers.
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‘All bets off’ on Fed’s next rate rise
The US Federal Reserve’s decision to hold interest rates in the 0-0.25% target range was met with muted response by investors, not surprised by the dovish tone.
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S&P lowers Japan’s sovereign rating on Abenomics concerns
S&P has lowered Japan’s sovereign credit rating from AA- to A+ on concerns about the strength of the ongoing economic recovery.
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UK wage growth picks up steam
Wage growth in the United Kingdom economy has picked up, registering a 2.9% increase in average pay, according to the Office for National Statistics.
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UK inflation slide to zero means only the experienced will prevail
The 0% UK August inflation figure is indicative of wider uncertainty that lies ahead, say industry experts, and the market is now an arena for only the most experienced of managers.