Market Update

Global equities closed the week on a positive note, buoyed by better-than-expected corporate results, indicating that companies are resilient amidst the challenges of slowing economic growth and trade tensions.
In the S&P 500 index, 81% (163 out of 201) of the companies that reported results surpassed expectations, adding to the positive sentiment in the equity markets. Additionally, optimism grew as signs of progress in phase one negotiations between the US and China emerged, coupled with President Donald Trump's statement that Chinese purchases of US agricultural products had commenced.
In the UK, Brexit uncertainties continued as MPs rejected the government's proposed Brexit timetable, leaving the exit situation in limbo once again. The decision now rests with the EU, which has to decide on the possibility and duration of an extension. Although French President Emmanuel Macron opposed a three-month extension, the EU is unlikely to push the UK into a no-deal Brexit. A potential extension into 2020 could pave the way for a general election, aiming to address the fractured Parliament. However, complications arise due to the Fixed-term Parliaments Act, requiring the support of two-thirds of all MPs, making it challenging for any party to secure a majority, especially with the SNP expected to dominate Scottish seats. More twists in the political narrative are anticipated.
On 24 October 2019, Mario Draghi presided over his final ECB meeting before Christine Lagarde assumes the role on 1 November 2019. As anticipated, the ECB kept Eurozone interest rates unchanged.
In the upcoming week, the US will see the release of Q3 GDP, consumer confidence data, a Fed monetary policy meeting, employment figures (non-farm payrolls, unemployment rate, participation rate, and average earnings), and the Personal Consumption Expenditures (PCE), the Fed's preferred inflation measure. Additionally, Eurozone Q3 GDP, Eurozone Consumer Price Index (CPI), and presidential elections in Argentina will be significant global events.