Oct 28, 2016 | Investment Advice

International News (Issue 423) – 28 October 2016

In the international space, US manufacturing PMI figures were published earlier this week with October figures coming in at 53.2, exceeding expectations. US factory activity growth is now at a 12 month high and further points to an accelerated pace of new business growth and activity. This provides further stimulus for the Fed to hike rates in December. The market is currently favouring a rate rise with a 62% chance this occurs in December.

No significant developments out of the US Presidential race this week…somewhat of a surprise! With the debates now finished, early voters have begun to visit polling booths in what appears likely to be a Clinton victory. That being said, one only has to think back to the Brexit vote 4 months ago to witness an unlikely scenario prevail.

Clinton 82%, Trump 18%

Apple shares are down 2% this week following somewhat disappointing earnings. Fourth quarter earnings weakened 19% due to lower iPhone sales volumes.

Finally, the UK economy actually expanded 0.5% in the quarter following the decision to vote in favour of exiting the EU. Whilst this was still softer than the 0.7% growth in the previous quarter, it managed to exceed analyst forecasts of 0.3%

 IndexChange%
U.S. S&P 5002133-8-0.4%
London’s FTSE6987-40-0.6%
Japan’s Nikkei17336+100+0.6%
Hang Seng23132-242-1.0%
China’s Shanghai3112+28+0.9%

 

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