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Morning Market Scoop 1 March 2019


Morning Market Scoop 1 March 2019

In our morning market scoop:

  • Markets react negatively to Trump-Kim Summit.

Trump-Kim Summit

“No Go Zone?”

What’s the scoop? No Deal Reached at Trump-Kim Summit

The last day of February kicked off with a bang as news started to surface on Thursday morning that the negotiations between Trump and Kim concluded prematurely as no agreement could be reached. Markets reacted negatively which saw the Korea Composite Stock Price Index (KOSPI) lower by over 1%.

  • Both parties expressed their regret that an agreement could not be reached and if President Trumps media address is anything to go by, optimism still reigns for future discussions.

Later in the day we saw the U.S Gross Domestic Product (GDP) numbers released as well as the Initial Jobless claims data from the United States. The GDP number surprized with beating analysts’ expectations at 2.6% and  Jobless claims also came in higher than expected at 225K.

  • “Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy's health”. – Investing.com

The big picture – Looking at the GDP numbers it would seem that the U.S economy is still ticking along as business investment seems to be driving factor. The U.S Dollar (USD) moved lower after the announcement as bond yields started to pick up. The 2.6% growth is just shy of the 3% annual target from the Trump administration.  It will be interesting to see what the Jobs numbers are going to bring to the table next week.

Notable companies reporting earnings are:

United States: Foot Locker Inc. (FL), Man Group Plc (MNGPY)

What does all this mean for me?

  • Some good news as it seems the S Economy has grown more than was expected in the fourth quarter. Whether this is just the calm before the storm, we will just have to wait and see as we look to Jobs Friday on the 8th of March.