Bassanese Bites: RBA to cut – September 30 2019
It was another modest risk-off week for global equities with the US S&P 500 again failing to push through the previous record high of 3,027 set in late July. Weaker European manufacturing data, the threat of a Trump impeachment and lingering uncertainty over US-China trade talks took their toll.
In Europe, the slowdown in global trade, Brexit-related weakness in the UK and regulation-related disruption to the German car industry have all conspired to push the EU Markit manufacturing index to a 7-year low of 45.6 in September. Germany’s manufacturing index slumped to 41.4, confirming its manufacturing sector, at least, is in a recessionary quagmire. The good news is that European-wide services is still holding above the 50 level (only just!) and that US manufacturing and service indices ticked up this month, suggesting lingering resilience.