Walker Crips News

Tariffs on EU goods; May requests extension on Brexit; Oil prices continue to rally.

Tariffs on EU goods; May requests extension on Brexit; Oil prices continue to rally.

9 April 2019

The Weekly Note is brought to you by the ALPHA: r² discretionary service team.

Market news

The White House has threatened to impose tariffs on a host of EU goods in retaliation for European aircraft subsidies which it claims is harming Boeing, the US-based aerospace company. Olive oil, wine and helicopters are amongst the items on the list proposed by the United States Trade Representative.
 
Last night’s news undermines the positive sentiment that has grown over the past week, which has seen investors become more optimistic about Washington’s protracted trade negotiations with China. It is now more plausible that the US could be involved in unfriendly negotiations with two of its largest trading partners simultaneously.
 
Nevertheless, upbeat US economic data has helped lift global stock markets since last week. A stronger than expected jobs report kept American unemployment at its historic low of 3.8%, while wage growth registered 3.2% compared to last year. The Institute for Supply Management’s manufacturing index rebounded, signalling a higher rate of expansion, but the equivalent index for the US service sector fell to the slowest pace since 2017.
 
German industrial data disappointed in February, adding to growing evidence that first quarter growth for Europe’s largest economy will be meagre. The Euro Stoxx 600 rose 2.5% last week, however, as did the FTSE 100, both helped by a perceived increase in the chances of a soft Brexit. Increased appetite for riskier assets also pushed yields on Gilts and German Bunds higher.
 
Still without an agreement in parliament, Theresa May has asked for a further Brexit extension. The government’s request is for June 30th, but it is expected that the EU will demand a much longer period that could stretch into next year. Further conditions may also prevent the UK from disrupting any EU decisions in the meantime.
 
Finally, oil prices have continued to rally, taking Brent crude oil above $71 per barrel for the first time since November last year. US inventories rose but overall supply is expected to be squeezed further by OPEC’s restrictions and country-specific sanctions.

 

The Weekly Note has a new look!

Subscribe today and email alpha@wcgplc.co.uk to register your interest, and receive the full Weekly Note in your inbox every Tuesday.

 

Walker Crips
Old Change House
128 Queen Victoria Street
London EC4V 4BJ

020 3100 8000
www.wcgplc.co.uk
client.services@wcgplc.co.uk

 

Important information

This publication is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this document constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips.

Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Registered office: Old Change House, 128 Queen Victoria Street, London, EC4V 4BJ. Registered in England number 4774117.

Share this article on: 

Important Note
No news or research content is a recommendation to deal. It is important to remember that the value of investments and the income from them can go down as well as up, so you could get back less than you invest. If you have any doubts about the suitability of any investment for your circumstances, you should contact your financial advisor.

About

Products and Services

Legal

We use cookies to improve your experience on our website. Please read our Cookie policy to find out more

© Copyright 2024 Walker Crips Group plc. All rights reserved.
Walker Crips Group plc, incorporates the following companies which are authorised and regulated by the Financial Conduct Authority: Walker Crips Investment Management Limited reference number 226344 and member of the London Stock Exchange, Walker Crips Financial Planning Limited reference number 114778, Ebor Trustees Limited reference number 462002, Barker Poland Asset Management LLP reference number 499311.
‍
Walker Crips Group plc is registered in England and Wales, number 1432059. Registered office: Old Change House, 128 Queen Victoria Street, London EC4V 4BJ. Walker Crips Investment Management Ltd is registered in England and Wales, number 4774117. Registered office: Old Change House, 128 Queen Victoria Street, London EC4V 4BJ. Walker Crips Financial Planning Ltd is registered in England and Wales, number 3790291. Registered office: Apollo House, Eboracum Way, York, England, YO31 7RE. Ebor Trustees Ltd is registered in England and Wales, number 3514268. Registered office: Apollo House, Eboracum Way, York, England, YO31 7RE. Barker Poland Asset Management LLP is registered in England and Wales, number OC341149. Registered office: Old Change House, 128 Queen Victoria Street, London EC4V 4BJ.

The value of investments can fall as well as rise. Investors may get back less than invested. Past performance is not a reliable indicator of future results.

The value of investments can fall as well as rise. Investors may get back less than invested.

Back to top