Market Update - September 2018

Investors had plenty to contemplate in August, including contagion risks stemming from the turmoil in Turkey and Argentina and a highly contentious trade backdrop. While the US and Mexico made some progress in forming NAFTA 2.0, Canada and the US were unable to come to terms for a trilateral agreement. Furthermore, President Trump ramped up his hard-line stance and stated that he wants to move ahead with a plan to impose tariffs on $200 billion of Chinese imports, while also casting doubt on the scope for a trade deal between the US and Europe. In the end, global equity market performance diverged somewhat, with US equity markets taking the fractious backdrop in stride and hitting record highs, while other major bourses moved broadly lower.