Headlines from Washington remained in focus last week after President Donald Trump signed an executive order to end subsidy payments to insurance firms that provide “Obamacare” health plans. On the economic front, US retail sales rebounded sharply in September, rising by 1.60% following a -0.20% drop in August. Higher gas prices in the wake of Hurricane Harvey were the major contributor, with the surge contributing to a 0.50% jump in the Consumer Price Index for September, the biggest increase in eight months. Stripping out energy and food, prices gained a more muted 0.10% last month. In geopolitical news, the Catalan push for separation from Spain remained in the headlines, with investors heaving a sigh of relief and sending the Euro to a two-week high against the US dollar after Catalan President Carles Puigdemont deferred an immediate declaration of independence. European equities received a boost from solid industrial production figures for the Euro Zone, particularly Germany, where the benchmark DAX 30 broke above the 13,000-ceiling for the first time in its 30-year history. In the UK, the latest round of Brexit negotiations ended with Prime Minister Theresa May’s hopes for a transition deal before the year-end looking increasingly unlikely. Meanwhile, tensions between the US and North Korea remained escalated while a diplomatic stand-off between the US and Turkey got uglier.
S&P 500 Continues to Set Record Highs
Weekly Report - 16/10/2017