However, despite my sympathy I do disagree with Donald Trump’s public criticising, as it could in fact easily backfire by forcing the Fed to continue increasing US interest rates when they may otherwise be considering a pause, simply to demonstrate their independence.
On a positive note, Donald Trump is reported to have agreed to meet his Chinese counterpart, Xi Jinping during the next G20 meeting in Argentina at the end of November. If correct, this will be after the mid-term elections, so there will be little need for any of Donald Trump’s posturing – which fingers-crossed means we may get a de-escalation.
While I appreciate that this week’s correction in equity prices may be uncomfortable, I don’t believe we are ‘at the beginning of the end’ of the bull market, as economic indicators and the overall outlook remains robust – and there are certainly no signs that a recession is on the horizon. As such, it is important not to overreact.
As for this coming week, it is slightly busier in terms of economic data. We have CPI inflation data from the UK, eurozone, Japan and China; retail sales for UK, US and China; UK employment data; and minutes from the last Fed meeting.
Ian Copelin, Investment Director