Picture your Future. Save for it by earning 1.5% on a 1-year Term Deposit Account! Learn more.

Epic Investment Partners Views: The Week Ahead

During the US holiday shortened week ahead, US retail sales and corporate earnings will be scrutinised for more clues on the health of the economy. On Tuesday eurozone industrial production, Germany’s ZEW survey expectations, UK employment data and US Empire manufacturing will attract market focus. UK CPI takes centre stage on Wednesday. Eurozone CPI and the ECB’s rate decisions will garner market interest – the ECB is widely expected to cut rates – and later we have US retail sales, jobless claims, industrial production prints. China GDP will be of key interest on Friday, as will the nation’s industrial production and home prices readings. Japan CPI, UK retail sales and US housing starts are also due on Friday. This week we will hear from the Fed’s Waller, BoE’s Dhingra and ECB’s Galhau later today, and the Fed’s Daly speaks on Tuesday.  

A mixed week for asset classes saw the 10-year US Treasury yield rise 13 bps to 4.10%. Meanwhile, solid bank earnings supported equity markets, and the S&P Index soared 1.11% to an all-time high. The dollar, measured by the DXY Index, rose 0.36%, boosted by higher-than-expected inflation data. Oil gained a further 1.27% last week, closing at $79.04pb amid supply distributions given heightened geopolitics.  

The key focus was on US inflation, CPI marginally surprised to the upside in September with the headline and core prints rising 2.4%yoy and 3.3%yoy, respectively. Real average hourly earnings also overshot expectations at 1.5%yoy. The Fed’s Williams said he expects it will be appropriate to “continue the process of moving the stance of monetary policy to a more neutral setting over time.” Meanwhile his more hawkish counterpart Bostic said he is willing to skip a meeting if underlying data suggests as much. We then had relatively benign US PPI readings on Friday. The ex. trade, transportation and warehousing reading feeds into the Fed’s favoured core PCE deflator reading. At 4.1%yoy it was the lowest reading since February, however it remains sticky. As a reference, the Cleveland Fed’s Nowcast model is forecasting a headline September PCE at 2.1% (from 2.2%). The week ended with the Uni. of Michigan sentiment falling below expectations, while the 1-year inflation forecast accelerated to 2.9% and the 5-10-year inflation expectations eased to 3.0%.  This morning China’s trade data underwhelmed with exports missing expectations for a 6.0%yoy rise, coming in at 2.4%yoy as global demand cooled. Imports also disappointed at +0.3% (exp. 0.8%). Over the weekend deflation pressures in China mounted as PPI fell at its fastest pace in six months, down 2.8%yoy in September, and CPI unexpectedly eased to 0.4%yoy, versus expectations for 0.6%yoy. At the same time, China’s Ministry of Finance signalled a strong commitment to tackling deflation and supporting economic growth through increased fiscal measures. The press conference highlighted four major initiatives: a large-scale debt restructuring for local governments, special bond issuance to bolster state-owned banks’ capital, the use of special bonds and other tools to stabilise the property market and expanded student aid for higher education. Whilst specific figures weren’t disclosed, the overall tone suggested substantial fiscal support. The Ministry also indicated significant room for increased central government borrowing and a higher fiscal deficit.  


Epic Investment Partner’s Key risks & Disclaimers:

EPIC Global Equity Fund (the “Fund”) is a sub-fund of EPIC Funds p.l.c. (the “Company”), which is an open-ended umbrella fund authorised in Ireland as a UCITS fund and regulated by the Central Bank of Ireland. This marketing material has been approved in the UK by EPIC Markets (UK) LLP, trading as EPIC Investment Partners, which is a limited liability partnership incorporated and registered in England and Wales under partnership OC306260 with its registered office at Audrey House, 16-20 Ely Place, London EC1N 6SN. EPIC Markets (UK) LLP is regulated by the Financial Conduct Authority. Distribution of this material and the offer of the Fund are specifically restricted in certain jurisdictions. In particular, but without limitation, neither this material nor shares in the Fund are available to US persons.

This document is for general information purposes only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. It is not a personal recommendation and it should not be regarded as a solicitation or an offer to buy or sell any shares in the Fund. This document represents the views of EPIC Investment Partners at the time of writing. It should not be construed as investment advice. Any person interested in investing in the Fund should conduct their own investigation and analysis of the Fund and should consult their own professional tax, accounting or other advisers as to the risks involved in making such an investment. Full details of the Fund’s investment objectives, investment policy and risks are set out in the Fund’s Prospectus and Supplement which, together with the Key Information Document (“KID”), are available on request and free of charge from Maples Fund Services (Ireland) Limited, 32 Molesworth Street, Dublin 2, Ireland and, in the UK, from EPIC Markets (UK) LLP, Audrey House, 16-20 Ely Place, London EC1N 6SN. Any offering of the Fund is only made on the terms of the current Prospectus, Supplement and KID. A subscription in the Fund can only be made after the provision of the KIID and should be made solely upon the information contained in the Prospectus, Supplement and KID.

An investment in the Fund is not suitable for an investor who cannot sustain a loss on their investment. There is no guarantee of the Fund’s future performance and past performance is not a reliable indicator of future performance. The value of your investment and the income derived from it can go down as well as up, and you may not get back the money you invested. The risks associated with making an investment in the Fund are described in the Prospectus and Supplement but investors should note, in particular, the following: 1) Foreign currency denominated investments are subject to fluctuations in exchange rates that could have a positive or an adverse effect on an investor’s returns. There is also a risk that currency hedging transactions for one share class may in extreme cases adversely affect the net asset value of the other share classes within the same sub-fund since there is no legal segregation between share classes; 2) The Fund is subject to the risk of the insolvency of its counterparties; and 3) Emerging market securities are subject to greater social, political, regulatory, and currency risks than developed market securities. This may impact the liquidity and value of such securities and, consequently, the value of the Fund.


MeDirect Disclaimers:

This information has been accurately reproduced, as received from EPIC Investment Partners. No information has been omitted which would render the reproduced information inaccurate or misleading. This information is being distributed by MeDirect Bank (Malta) plc to its customers. The information contained in this document is for general information purposes only and is not intended to provide legal or other professional advice nor does it commit MeDirect Bank (Malta) plc to any obligation whatsoever. The information available in this document is not intended to be a suggestion, recommendation or solicitation to buy, hold or sell, any securities and is not guaranteed as to accuracy or completeness.

The financial instruments discussed in the document is intended for retail clients however, it may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein.

If you invest in this product you may lose some or all of the money you invest. The value of your investment may go down as well as up. A commission or sales fee may be charged at the time of the initial purchase for an investment. Any income you get from this investment may go down as well as up. This product may be affected by changes in currency exchange rate movements thereby affecting your investment return therefrom. The performance figures quoted refer to the past and past performance is not a guarantee of future performance or a reliable guide to future performance. Any decision to invest in a mutual fund should always be based upon the details contained in the Prospectus and Key Information Document (KID), which may be obtained from MeDirect Bank (Malta) plc.

Join MeDirect today to access the tools you need to put your money to work on your own terms.

Latest news articles

Epic Investment Partners Weekly Article
All News

Epic Investment Partners Views: The Week Ahead

This week’s market focus includes global inflation data, the COP 29 climate conference, and major earnings reports from Chinese e-commerce giants, along with key US CPI, Eurozone GDP, and UK employment figures, as central banks weigh in on monetary policy and China’s recent measures to support domestic growth gain attention.

Refinancing your home loan can result in significant savings should you be able to secure a lower interest rate. It is always worth shopping around to see if a better mortgage is available.
All News

The potential benefits of refinancing your home loan

Refinancing your home loan can result in significant savings should you be able to secure a lower interest rate. It is always worth shopping around to see if a better mortgage is available.

Structural forces playing out now
All News

BlackRock Commentary: Structural forces playing out now

Despite expectations for another Federal Reserve rate cut, strong U.S. job and wage data suggest rates may not fall as much as markets anticipate, while the European Central Bank aligns more closely with lower-rate projections, favoring euro area fixed income over U.S. assets.

Experience better Banking

The sooner you start managing your money, your way, using the best-in-class tools, the sooner you’ll see results. 


Sign up and open your account for free, within minutes.

MeDirect_Multi-Devices-cards

You are leaving medirect.com.mt

Please be aware that the external site policies, or those of another MeDirect website, may differ from this website’s terms and conditions and privacy policy. The next website will open in a new browser window or tab.

 

Note: MeDirect is not responsible for any content on third party sites, nor does a link suggest endorsement of those sites and/or their content.

Login

We strive to ensure a streamlined account opening process, via a structured and clear set of requirements and personalised assistance during the initial communication stages. If you are interested in opening a corporate account with MeDirect, please complete an Account Opening Information Questionnaire and send it to corporate@medirect.com.mt.

For a comprehensive list of documentation required to open a corporate account please contact us by email at corporate@medirect.com.mt or by phone on (+356) 2557 4444.