|Data for week commencing 04 February 2019|
US stocks were down overnight and it had a lot to do with the news flow over the week. And consistent with what we’ve had to deal with over 2018, there’s good and bad news, so we have to work out which ones will be the most impactful on stocks in the near and long-term.
The first of three huge market-driving news items of the week was the backdown of the Reserve Bank from 3% plus growth, putting a rate cut close to a 50/50 chance and sinking the dollar to 70.96 US cents. This actually coincided with the Fed overnight dropping its growth forecast and explains why the US 10-year bond rate is now 2.6% but was 3.25% around September.