Wyn Thomas - Axys Investment Management

Weekly Market Commentary 20th September 2019

KEY CENTRAL BANKS SEND DOVISH SIGNALS

This week we saw more central bank action, as the world’s major monetary policy makers try to cope with a slowing global economy. In the US the Federal Reserve cut rates by a quarter per cent, following the lead set by the European Central bank last week. The move wasn’t enough to please the president, who has been a vocal supporter of more aggressive action, but still enough to split opinion in the bank. While there is a real fear that a slowdown is coming, the US economy is stubbornly showing few signs of actually slowing down. Policy makers are wary of fighting a phantom recession but delaying might mean the slowdown coincides with the election, hence the tweets. Read more…