Wyn Thomas - Axys Investment Management

Weekly Market Commentary 5th July 2019

EXPLORING THE DIVERGENCE BETWEEN EUROPE AND THE US

This week was nicely summed up by president Trump’s July 4th reimagining of the 1776 revolutionary war to include ye olde airports; incoherent markets with soft expectations fantasies winning out over hard reality. Equities rallied on talk that US and China might restart trade talks, despite data showing that manufacturing sectors in both China and the US have seen a slump in activity. Home purchases have been picking up, but construction has been falling and consumer confidence has risen while business sentiment has deteriorated. It will be interesting to see if shopper’s refusal to acknowledge a slowing economy will actually make a recession less likely. Read more…