During a very quiet week, equity markets initially continued their climb as weak inflation and retail sales data out of the US released last Friday reduced market expectations for a September US interest rate rise. All three US indices hit record highs by the close on Monday, with the S&P 500 returning 8.6% for the year to date. Despite comments from William Dudley, president of the New York Fed, suggesting that a September rate hike is not off the table, the US dollar continued to weaken versus most global currencies over the course of the week.
Global markets recorded a week of strong gains driven largely by positive data out of the U.S. Better than expected U.S. labour
market data last Friday and strong earnings from major US department stores on Thursday buoyed investor sentiment and
underlines the view that the US economy retains resilience
Markets started the week off cautiously as mixed global manufacturing data, weakening oil prices and uncertainty over central bank policy following investors heightened expectations having been dashed by the relative inaction of the Bank of Japan the week before.
Global markets recorded another week of modest gains in a week dominated by risk events in the form of policy announcements by the Federal Open Market Committee (FOMC) and the Bank of Japan (BoJ) Monetary Policy Committee.