Wahed Invest | March UK Market Commentary

Back in Q4 of 2018, the convergence of several issues caused panic and a sell-off in markets: 1) fears that the Federal Reserve would continue to raise interest rates 2) an escalation in the trade war between the U.S. and China and 3) broader concerns around weak data and growth globally.

Fast forward to today, markets have had one of the strongest quarters in recent memory; U.S. equities are up over 13% and global equities up over 9%, what changed?

As mentioned in previous commentaries, the Fed has moved to a much more cautious stance in relation to additional interest rate cuts; Chairman Powell has held off on any additional cuts, scheduled the end of quantitative tightening for later this year and has reiterated a data dependent, patient approach to the economy. Similarly, the European Central Bank (ECB) has stated it has no immediate plans for interest rate hikes until at least next year.

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Author: The Muslim Wealth Portal

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