Brooks Macdonald market update video – October 2024

Q&A 

What was the significance of the US Fed's recent rate cut?  

The US Fed cut rates by 50 basis points, which was larger than usual, alleviating concerns about a potential recession and positively impacting market sentiment.  

What measures did China take following the US rate cut?  

China implemented several monetary and fiscal stimulus measures to boost its economy, which led to a rapid increase in its stock market by 25% within weeks.  

What concerns remain about China's economy despite the stimulus?  

Despite the short-term positive effects of the stimulus, there are ongoing concerns about China's property market, which requires substantial measures and time to resolve.  

What impact did ASML's disappointing numbers have on the market?  

ASML's disappointing earnings led to a significant drop in its shares, marking its worst day since 1998, highlighting volatility in the semiconductor sector.  

What are the implications of stock buybacks in the UK market?  

In the UK, significant stock buybacks are occurring, with companies canceling shares, which can positively affect the underlying financials of businesses.  

What geopolitical events should investors be aware of?  

Investors should monitor the US election and potential geopolitical tensions in the Middle East, as these could significantly impact market dynamics.