Imperium Capital Publication

Weekly Digest – 24 June 2019

  • Dovish tilt by global major central banks led by the US Federal Reserve
  • Tensions rose between the US and Iran, resulting in a rally in global oil prices
  • Brent Crude rallied 5.1%, ending the week at $65.2 per barrel
  • Gold prices gained 3.5%, ending the week at $1394.3 per ounce

Viewpoint – June 2019

To say we are living through extraordinary times is beyond dispute. The current economic expansion in the US is soon set to become the longest in history, employment growth in the US and elsewhere has been very strong, monetary policy across the developed world remains ultra-loose by any historical standard and yet inflation is still remarkably subdued. Indeed, recent falls in core inflation measures especially in the US have rattled investors and raised fears of weaker growth and tougher conditions for the corporate sector ahead, and in Europe and Japan of prolonged deflation. US inflation as measured by core PCE deflator has fallen to 1.6%, well below the Fed’s target of 2%, which has hardly been breached throughout the post crisis decade.

Weekly Digest – 17 June 2019

  • Global equity markets were relatively flat on the week
  • The US reached an agreement with Mexico to avoid tariffs
  • Brent crude fell 2.0%, ending the week at $62.0 per barrel
  • Gold prices remained relatively flat, up 0.3%, ending the week at $1347.2 per ounce