Weekly Market Recap
Week in review
- RBA cuts rates to 0.50%
- U.S. Federal Reserve cuts rates to 1.25%
- Australian real GDP expands by 2.2%y/y in 4Q19
- NAB business confidence
- ECB rate announcement
- U.S. CPI inflation
Thought of the week
The improvement in key business surveys such as the PMI for manufacturing and services had laid the foundation for an improving economy in 2020. The picture is very different now, as this week’s chart illustrates. The difference between this global shock and last years trade war is that viral spread impacts both manufacturing and services sectors. The manufacturing sector clearly suffers as factories in China are closed or operate below capacity, creating delays in the supply chain. Meanwhile, services activity will deteriorate as travel is avoided, as are large shopping areas and events are cancelled. China still faces the worst of the economic impact, but the risk to the rest of the world is rising.
Global growth will be weak, but for how long is unknown
Global PMIs for services and manufacturing
JPMorgan Global Research Enhanced Index Equity Fund
To achieve a long-term return in excess of the benchmark by investing primarily in a portfolio of companies, globally; the risk characteristics of the portfolio of securities held by the Sub-Fund will resemble the risk characteristics of the portfolio of securities held in the benchmark.