Bassanese Bites: Try Again – September 09 2019
Global equities enjoyed another positive week thanks largely to confirmation that the US and China will engage in another round of trade talks next month. Bond yields pushed higher and gold eased as ‘risk-on’ sentiment tentatively prevailed in markets.
Despite weakness in global manufacturing data, service sector surveys in both Europe and the US last week remained positive – as did the US payrolls report – which has eased fears of a gathering global recession (for now at least). While Chinese exports and imports remained weak, key surveys of manufacturing and non-manufacturing surprisingly strengthened a little in August. Despite this, China decided to added further stimulus to its economy on Friday through the third cut in bank reserve requirements this year – and the seventh since early 2018.