Global equities recover their mojo

Global equities rebounded last week, gaining 3.1% in local currency terms and as much as 4.6% in sterling terms. They have now regained the bulk of the losses sustained due to fears over the coronavirus, although Asia and Emerging Markets at the epicentre of the outbreak have only recovered around half their declines. Markets have taken heart from encouraging news … Read More

It’s not all about the coronavirus

Global equities fell back further last week as worries over the coronavirus escalated. As of Friday, markets had fallen back some 3.5% from their highs on 20 January, in local currency terms. Asian and Emerging markets have unsurprisingly been hit hardest and are down some 6-7% from their peak. The correction in equities has been very limited so far in … Read More

The coronavirus and markets

Global equities had started to looked vulnerable to a correction following their gain of close to 14% since early October, and the coronavirus has provided the catalyst for just such a setback. The US market was down on Friday and the UK and European equity markets have fallen 2% or so this morning. The coronavirus has provoked comparisons with the … Read More

Remaining neutral on equities for now

The rally in equities continued last week with markets relishing the prospect of an upturn in global growth on the back of an easing in trade tensions and supportive central bank policy.

Corporate earnings move centre stage

The equity rally resumed last week. The bout of nerves triggered by the escalation of US-Iran tensions proved short-lived as both sides signalled there would be no further tit-for-tat retaliation. The positive mood has been reinforced by the prospect of the US and China signing their ‘phase one’ trade deal which should cement the major easing in trade tensions seen … Read More

2020 – significantly lower returns likely than in 2019

2019 was a stellar year for equity markets. Global equities returned 27% and 22% on a total return basis in local currency and sterling terms, respectively. The US once again performed best, with a return of 26% in sterling terms compared to 21% for Europe, 19% for the UK and 15% for Japan, Asia and emerging markets.

Trade to remain centre stage

The initial market reaction to the thumping majority gained by the Conservatives was pretty much as expected. UK equities rallied across the board, with domestically focused sectors and small/mid cap stocks doing best, now the outlook for the UK economy is looking rather brighter. The FTSE 100 lagged significantly on Friday, held back by the strengthening in the pound which … Read More

Conservative Victory – how much further upside for UK assets?

The Conservatives have won 364 seats and their largest majority since 1987. Not surprisingly UK markets have reacted favourably now the spectre of a hard-left Labour government has disappeared. At the time of writing, the pound is up 2-3 cents at $1.34 while the FTSE 100 is up 1.7% and the mid cap FTSE 250 up 5.0%. The big question … Read More

Conservatives on track to win a majority

Equities remain hostage to the incessant swings in sentiment over the state of the US-China trade talks. Last week started with Trump saying it might be better to wait until after next year’s election for a deal but more positive comments from both sides subsequently cheered markets up.

A sense of perspective is key

After two weeks of little change, the rally in global equities resumed last week. US-China trade negotiations remain centre stage and the presumption is very much that a limited deal will eventually be agreed. Still, this is not yet a done deal, not least because recent US support for the protesters in Hong Kong has not gone down well in … Read More