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Epic Investment Partners Views: The Week Ahead

A fairly thin week for data will see the G20 Summit in Brazil (Mon-Tue), key earnings including AI giant Nvidia (Wed) and central bank chatter. Later today we will hear from the ECB’s Vujcic (and again on Tue), Fed’s Goolsbee and BoE’s Greene, Guindos and Lane at separate events. Eurozone CPI and US housing starts are due on Tuesday. UK CPI will draw attention on Wednesday, and we’ll hear from the BoE’s Ramsden, and the ECB’s Lagarde, Guindos and Stournaras. Eurozone consumer confidence and US existing home sales, jobless claims and Phili, Fed factory index will shed more light on the state of the economy. The Fed’s Hammack and Goolsbee, BoE’s Mann, and a number of ECB officials speak on Thursday. Eurozone HCOB manufacturing and services PMIs, UK retail sales, and UK and US S&P Global manufacturing and services prints will garner market interest on Friday.  

A mixed session for asset classes last week, amid US inflation, Fed chatter and US political developments. US inflation in October aligned with market expectations, as the headline CPI increased by 2.6%yoy, up from September’s three-year low of 2.4%yoy. Housing costs remained a key driver, with the shelter index climbing 0.4%mom in October and accounting for more than half of the overall monthly increase. Core inflation, excluding food and energy prices, remained steady at 3.3%yoy, while the super core CPI (core inflation less housing) printed 4.4%yoy.  

Fed chatter included Musalem stating that while the Fed is close to achieving its inflation and employment goals, monetary policy should remain moderately restrictive until inflation fully reaches the 2% target. Kashkari cautioned that whilst one-off tariffs might not affect long-term inflation, a “tit for tat” escalation could destabilise the economy and hamper the Fed’s inflation control efforts. Powell said the Fed is prepared to decelerate its interest rate cuts. The central message from his speech is that the Fed sees no immediate need for drastic action, with the economic resilience allowing it the flexibility to adopt a more measured approach. As Powell noted, “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”   

The US 10-year benchmark yield rose 14bps to 4.44%, while the S&P Index fell 2.08%, driven by Friday’s pharmaceutical sell-off. The dollar, DXY Index, rose 1.61%. The stronger dollar pushed oil prices lower, as did reports that China’s oil demand fell 5.4%yoy in October. Brent fell 3.83% to $71.04pb last week.  

Elsewhere, China’s October economic data indicates strengthening momentum from recent stimulus measures, with infrastructure investment rebounding for the first time since March, while equipment purchases surged 16.1%yoy. Consumer spending accelerated as retail sales grew 4.8%yoy, boosted by trade-in programs and holiday spending, while the services sector posted its strongest performance this year. Though real estate investment continued to contract, positive signs emerged including increased household loans and the first expansion in real estate services since June 2023.  


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.

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