With almost three full weeks of trading remaining in February, many investors and analysts are now looking ahead to March. The last month of the quarter is set to be a pivotal one in this year’s market. Some key political events could result in either newfound confidence, or a period of stock market slowdown, depending on how things play out.
Here are the top stories that you will need to follow in the coming weeks.
Final Date for Brexit – Potential ‘No-Deal’ for Britain
The withdraw of the United Kingdom from the European Union on March 29 might seem far removed from American shores, but the impact of this once in a lifetime event will be far reaching. It seems increasingly likely that the U.K. will withdraw from the E.U. without a preferred deal in place. This could leave the U.K. politically isolated without key trade structures and agreements.
This could cause large companies and investors to leave the U.K., and the global economic impact would be significant. The good news for investors in America is that there could be new long-term deals struck between the U.K. and the U.S., allowing for stronger trade deals that benefit both sides of the Atlantic.
A New Government Shutdown Could Rattle Stock Market Investors
The government has until February 15th to secure a new spending agreement in Congress. Without this, there could be another partial government shutdown. With the last shutdown (the longest in history) having an economic impact of $11 billion, investors are likely to take more notice this time around, and it could lead to uncertainty in the stock market.
Warning signs emerged this weekend when Senator Richard Shelby said that negotiations have “stalled”.
China U.S. Trade Talk Deadline is Approaching
Trade disputes had a huge negative impact on stock markets last year. Both the U.S. and China are currently engaged in high level trade talks, with a March 2 deadline for a new agreement. Without a new deal, President Trump could introduce new tariffs, and China would likely retaliate with their own. This would disrupt both U.S. producers and consumers, and the stock market impact would likely be significant. Recent news surrounding the talks has been positive but both sides are yet to release specific details regarding any long-term agreement.
All of these stories have the potential to disrupt or boost the stock market, depending on outcomes. March will be one of the biggest months for financial news this year, and your investment decisions in the coming weeks should take all the key political developments into consideration.
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