Daily Commentary BY THE CURVE TEAM –

Uncertainty Continues to Undermine the Outlook

3rd of October, 2019

Global growth concerns continue to intensify as trade wars spread.

Less that 24 hours after the latest global PMI’s confirmed manufacturing at the global level continues to decline, global growth fears have intensified. As the trade war between the US and China drags on, the Europeans are now in the firing line.

The prospect of a tit for tat tariffs between the US and Europe has only added to concerns over global growth at a time when the data is pointing to a clear slowdown in economic growth. As central banks do their best to support their respective economy’s, persistent political uncertainty is undermining confidence, effecting business decisions and consumer activity, resulting in lower growth and a deteriorating outlook.

Markets reacted accordingly with equity markets hit hard for the second straight night and bond markets caught a bid, driving yields lower once again. It was a much quieter night for currency markets with the AUD still holding its ground at 0.67 despite the RBA’s latest efforts to knock it lower.

With markets on edge, it sets up an interesting end to the week with US nonfarm payroll due out Friday night.

Matthew Dunshea

Client Relationship Manager