15 April 2019
Bassanese Bites: Earnings watch – Week beginning: 15 April 2019
Global stocks continued to inch ever closer to late last year’s previous closing highs last week, thanks to ongoing encouraging data and benign rhetoric from central bank officials. Improved risk sentiment saw bond yields also lift, though the $US held broadly steady.
As expected, the IMF last week downgraded its global growth forecast for 2019 and suggested there remains downside risks. That said, it’s still anticipating a second half rebound in growth, helped by policy stimulus in China and some recovery in beleaguered emerging markets such as Argentina and Turkey.
Japan should improve as the negative impact of last year’s natural disasters wane, as should Germany once its car makers fully adjust to new fuel emission standards.
It’s also hoped Italy can deal with its budget problems and spur stronger growth this year, and greater clarity will emerge with regard to Brexit. US growth meanwhile seems likely to hold up OK, albeit slow back toward potential as the impact of last year’s tax cuts wane.
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