September Market Movers: Trade Talks, Fed & Global Events

Global equities rose in September as the US and China agreed to resume high-level trade discussions and the Fed delivered on an expected rate cut. While these two main story lines continue to dominate market movements this year, there were numerous items to digest this month.

The Saudi Arabia Missile Attack & Impeachment Proceedings

Have you been noticing that you are paying more at the pump lately? A missile attack on Saudi Arabia’s main oil facility, which the US alleged was sponsored by Iran, created a spike in global energy prices and appeared likely to lead to military escalation in the region. However, the story faded from the headlines surprisingly quickly. Also, Speaker of the House Nancy Pelosi announced a formal impeachment inquiry on the President.

Relatively muted market reaction to these events as well as the drama surrounding Brexit and protests in Hong Kong are a reminder that stocks are investments in companies, not countries.

How is the Economy Faring?

Economic data remains mixed, providing ammunition for both bulls and bears. Still, on balance, investors seem satisfied that accommodative central banks will be successful in avoiding global recession as low bond yields globally continue to support stock prices.

Read More: How is the Economy Doing Heading into Q4?