Brexit, Fed & Trade – The List to Watch in Q1 2019
- Brexit, U.S./China trade and the Federal Reserve’s (Fed’s) monetary policy decision are some of the key events shaping markets so far in the first quarter of 2019.
- This week, a “patient” Fed left interest rates unchanged and struck a softer note than seen in the past, thus improving the mood of equity markets and easing fears of a Fed-induced recession.
- Markets have struck a positive tone in anticipation of progress toward both Brexit and a trade deal with China. While stocks have staged a nice rally to start the year, that doesn’t mean we are fully out of the woods yet. Volatility will likely persist until we have a clearer path for Brexit and a tangible deal on U.S./China trade negotiations.