- Equity markets moved higher once more last week, with earnings and economics, the Fed Chair announcement, and talk of tax cuts in the US leading the agenda. The US economy added 261,000 jobs in October, which was below forecasts that had the number at over 300,000. However any negativity was offset by a revision upwards of the previous two months figures by 90,000.
- In the US the Republican Party released further details of their tax plans, which are centred on a call for a large corporate tax rate cut. However, this may need to be offset by changes on the individual side which are likely to be met by opposition on both sides of the aisle. The naming of Jerome Powellas Janet Yellen’s replacement at the Federal Reserve did little to move markets, with most participants seeing it as a continuation of the current policy strategy.
- On the earnings front, nearly 80% of companies on the S&P 500 have reported since the end of Quarter 3, with a broadly positive trend materialising led by the tech, healthcare and materials sections.
Source : Monday 6th November 2017 Zurich Life Investment Communications