Weekly Market Comment – March 11th 2019
After a strong start to the year equity markets weakened somewhat last week. Concerns over the strength of the global economy were fueled by the ECB cutting its economic forecasts for the Eurozone on Thursday, followed by the release of sluggish US employment data for February on Friday. While markets have been happy for decelerating economic growth rates to take further interest rate increases off the table (allowing equities regain much of their Q4 losses in 2019), investors don’t want a recession. Accommodative central bank policy has been supportive of markets and a recession is still possible rather than probable. But any indicators which suggest that possibility may be increasing is likely to cause volatility in equities.
– Niall Dineen
Investment Team Leader