ThreeSixty Research Market Update – December 2018

Highlights:

  • The US economy is likely to face headwinds from the lagged effects of interest rate tightening and fading fiscal stimulus, as well as a stronger US dollar if a tightening Fed policy remains.

  • A trade war détente was reached between China and the US at the recent G20 meeting in Argentina, but trade issues continue to weigh on markets.

  • Eurozone GDP growth is disappointing, rising 0.2% in the September quarter according to November’s estimate and well down on the expected 0.4% growth.

  • Chinese stimulus has been relatively modest, but more could be forthcoming if the trade war continues to escalate.

  • Australian GDP growth slowed significantly in the September quarter, falling to 2.8% year-on-year from 3.4% in the June quarter.

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