- Global equities fell slightly last week with a small 0.1% loss. Emerging markets (-0.8%) led global equities lower while developed ex-U.S. equities fell slightly (-0.2%) and U.S equities were flat.
- A summit in Europe failed to produce an agreement on the UK’s departure from the European Union in March 2019. A follow-up meeting in November is planned to help finalize a deal.
- Meeting minutes from the September Federal Reserve meeting indicated that the Fed remains on a path to gradually increase interest rates. The minutes did not contain any major surprises, but were less hawkish overall than recent comments made by Fed Chair Jerome Powell.
- Japan Prime Minister Shinzo Abe announced a consumption tax increase from 8% to 10% beginning in October 2019
- So far, 70 S&P 500 companies (14.0%) have reported results. Overall earnings growth (22.1% year-over-year) remains ahead of the pre-earnings season estimate and near the level observed in the prior quarter.
- A majority of the companies reporting this week will come out of the industrials and communication services sectors
- Many of the major non-U.S. countries reporting flash manufacturing Purchasing Managers’ Index figures this week expect further growth deceleration from the beginning of the year
- In Thursday’s meeting, the European Central Bank will likely confirm its plan to end asset purchases by the end of 2018, after already halving its monthly purchase amount to €15 billion in early October