Weekly Macro & Markets View

What were the key global economic data releases, what is Zurich’s view and what does this mean for financial assets?

Weekly Macro and Markets View, Week 51

The Fed cuts rates by 25bps to a range of 3.5% to 3.75%
Jerome Powell indicated that the FOMC is now likely to pause, though a significant deterioration of the labour market would accelerate further easing.
Global equities hit a record high before easing a little on Friday
Despite Oracle’s disappointing results and a lagging tech sector, bullish sentiment and a dovish Fed lift the MSCI World Index to a record high as the rally broadened across industries.
Lower US tariffs on Switzerland enter into force, with a ceiling of 15% on Swiss imports replacing the previous 39% tariff rate
The reduction in US tariffs is supportive for Swiss exporters, and reduces the risk of a deeper economic slowdown.