The last few trading days of February are set to be volatile as we enter into the month of March. The week ahead will include a little bit of everything as investors continue to navigate their way through 2019, a year which has already produced a 12% bump in stock markets, 20% move higher in the price of oil, a stronger US dollar and a Federal Reserve who is now adopting a patient mantra.
From the US perspective we have another busy week on our hands. Not only will US/China trade negotiations take centre stage as we approach the 1st March deadline before Trump’s threat of tariffs come into play, but also a meeting with Kim Jung Un. Even though Trump has waved around the idea of delaying the imposition of tariffs on 1st March, this week’s set of negotiations will be incredibly important. We will now find out just how much compromise each country is willing to give in the hope of forging a long-lasting new understanding between the two economic powerhouses. Outside of this, economic data will also be closely eyed, the main release will be Q4 2019 advanced GDP. This will no doubt give the Fed something to think about. In respect to the US central bank, Chair Powell will testify in front of congress this week on the state of the US economy. He’ll make an appearance on both Tuesday and Wednesday.
In regards to the UK, economic data will be light but the main focus, as usual, will be on Brexit. Participants will be watching closely for any developments, as well as Theresa May addressing Parliament. Elsewhere, eurozone flash inflation numbers for February will be released on Friday.
Written by Viv Savani. 9:11am, February 25th 2019
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.