Wednesday, 30th October, 2019

Financial markets remained in a holding pattern last week, with economic data and geo-political developments failing to nudge markets materially in either direction over the week. The Brexit saga continues to drag on, as the UK Parliament withheld approval of PM Boris Johnson’s updated Brexit deal with the EU over the weekend (for now), legally forcing the PM to seek yet another extension to Brexit. At the very least, it appears the risks of a no-deal Brexit have been reduced – spurring a bit of relief in the market.

Last week’s NZ and Australian economic data was ‘ok’, as Australian unemployment rate edged lower to 5.2% in September and NZ CPI inflation was slightly stronger than expected. However, the sharper than expected slowdown in Q3 Chinese economic growth provides gives plenty of reasons to remain anxious on the economic outlook.