Market Update

After a turbulent end to the previous week due to escalating US/China trade tensions, global equity markets rebounded significantly this week, fueled by optimism following positive remarks from Donald Trump. At the G7 summit, Trump expressed optimism, stating that the prospects for a US/China trade deal are currently the most promising since negotiations began.
In the UK, the pound weakened by 0.8% against the US dollar but strengthened by 0.4% against the euro after Boris Johnson's approval to suspend Parliament, indicating that the market has largely factored in the possibility of a no-deal Brexit. Controversial as it may be, the suspension of Parliament seems to have had an impact. Danish Prime Minister Mette Frederiksen's recent comments emphasized the need for the EU to be "flexible and positive" in negotiations to avoid a no-deal Brexit. Furthermore, UK and EU officials are intensifying talks to prevent a no-deal scenario. It's worth noting that a Brexit deal is also in the EU's best interests, given the challenging outlook for key German industries, as evidenced by profit warnings from major carmakers and parts suppliers such as Daimler and Continental.
The focus for this week's economic data lies in Friday's (September 6, 2019) US employment report, including non-farm payrolls, the unemployment rate, participation rate, and average earnings. Additionally, on Friday, Federal Reserve Chairman Jay Powell will address the public for the last time before the Fed's 'quiet period' preceding their next monetary policy meeting on September 17 and 18. Market observers will be keenly listening for any hints regarding the timing and magnitude of the next interest rate cut.