October 2018 Economic Recap
After years of negotiations the European Commission and UK Prime Minister Theresa May reached an agreement on terms of the UK’s departure from the EU. The deal would allow the U.K. to maintain a close relationship with the EU while also taking some control of its borders (with the noteworthy exception of Northern Ireland). EU leaders approved the deal, but following a mass departure from May’s cabinet, along with backlash from both sides of the political aisle, Parliamentary approval of the deal seems unlikely. Failure to approve the deal would put the UK back at square one, with only four months until it is slated to leave the EU.
Oil entered a bear market and stocks sold off during the month, reflecting a combination of some easing of global growth as well as higher interest rates in the U.S. Credit spreads also widened a bit amidst Sears’ bankruptcy and concerns over GE, and inflation expectations contracted multi-year high points. Nevertheless, domestic economic data remains strong; the economy added over 200K jobs once again in November, while average hourly earnings hit a new post-recession high of 3.1%.
For a deeper consideration of the economic data released during October, please follow the links below: