Weekly Market Update – Oct. 22, 2018

Last Week

  • 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.

This Week

  • 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


We're ready to assist you

If you are looking ahead to how you can best invest your money for the future, our advisors would be happy to talk with you.

Contact us today