Gerald Fitzgerald’s Market Review April 20

LAST WEEK IN 30 SECONDS...

Whilst the consensus outlook for equity market recovery is that it is not likely to follow a V-shape, nonetheless, global markets have continued to trend upwards. A slowdown in the contraction rates due to the coronavirus along with Donald Trump pressing for business to reopen, investor risk-on sentiment prevailed. This was despite glaring headwinds including the IMF noting the impact on global growth could potentially be as bad as the 1930s. Global equities finished the week up 2.7% in euro terms.

Global government bonds remained volatile in their own right, with the yield on a German 10-year bund falling by -0.14% over the week to finish at -0.48%.

THIS WEEK IN 30 SECONDS...

Earnings announcements ramp up this week with over 3,900 company announcements including Google, Intel and Unilever. Whilst these announcements play second fiddle to updates on vaccine development against the coronavirus, investors continue to assess the impact of global growth headwinds on corporates’ outlook for the remainder of the year.

Elsewhere, Eurozone market PMI updates are due for release on Thursday, with the figures widely anticipated to remain in deep contraction. In the US, jobless claims numbers are out on Thursday. With over 22 million currently unemployed, investors are eager to see a sharp reversal in these figures as businesses are gradually reopened.

ON YOUR BIKE – PELOTON’S HORS CATÉGORIE ASCENT

Akin to a mountain stage of the Tour de France, Peloton’s share price has charted a steep trajectory over the past number of weeks. The company provides at home exercise classes via a monthly subscription, and has seen a significant increase in subscriber numbers in recent weeks. This has contributed to the company’s share price climbing over 70% in the past 25 days. The biggest challenge ahead, however, is how many subscribers remain once existing restrictions are eased.