USA

Year to Date (YTD)

Commentary: The latest US economic data showed that the inflation rate fell further and now stands at 2.9%. The inflation rate together with worse-than-expected employment numbers point to an initial interest rate cut throughout the September meeting. A jobs report that indicated that the US economy added just 114,000 jobs underscored recent fears that the job market is slowing down too quickly and briefly sent shockwaves in equity markets, with the VIX index surpassing 60 momentarily. The latest unemployment rate figure ticked up to 4.3% with markets recouping most of the losses. The US stock market maintained its positive performance with the S&P500 up by 16.3% and the NASDAQ up 17.4% YTD.

Europe & UK

Year to Date (YTD)

Commentary: The updated European economic numbers highlighted how the German economy is still struggling to revive its growth. These poor numbers, coupled with a downward trend in inflation, indicate that the ECB will not only be committing to a September rate cut but also likely to maintain its interest rate cut streak. The latest report from Eurostat noted that inflation dropped down to 2.5% in the eurozone whilst the unemployment rate ticked up to 6.6%. European markets are generally positive with the Eurostoxx 50 up 7.1%.

Malta

Year to Date (YTD)

Commentary: The latest economic data pertaining to the Maltese economy highlights how the economy kept on growing at a brisk pace, especially when compared to its European peers. The Central Bank of Malta lately reported that economic activity is expected to continue growing at a gradual pace with inflation set to fall further. Maltese firms keep on posting positive results with leading banks BoV and HSBC recording very positive results, and Malta International Airport reporting record numbers yet again. These results have been positively reflected with the share price of these companies going up steadily. The MALTEX recouped most of its losses and is now down by 1.9% YTD.