Monthly comment December 2019

The last month of the year ended with rising stock markets, although they fell slightly during the last trading days. Progress in the US-China trade talks was one of the main reasons for the positive development – a Phase 1 agreement will probably be signed in mid-January. Although that is positive, it seems likely that the countries will continue their negotiations in years to come. In the UK parliamentary elections in mid-December, Boris Johnson’s Conservative Party gained majority, which could ease the process of Brexit on 31 January. However, many obstacles remain. Both the ECB and the FED left the interest rate unchanged at their respective monetary policy meetings. The Swedish Riksbank raised the rate to 0%. All three indicated that the interest rates will remain low for a long period of time.