Gerald Fitzgeralds Market Review February 24th

LAST WEEK IN 30 SECONDS...

Markets trended lower last week following the continued uncertainty of the extent to which the spread of the coronavirus is being controlled. Elsewhere, US manufacturing data released on Friday painted a slowing growth picture, which saw the US 30 year Treasury bond yield hit an all-time low of 1.82% with rising expectations of further intervention by the US Federal Reserve. Japan added to the gloom by announcing Gross Domestic Product (GDP) fell by annualised 6.3% over Q4 2019.

Global equities in euro terms finished the week down 1.2%, with gold seeing noted traction and up 3.8% over the same period.

THIS WEEK IN 30 SECONDS...

The ripple effect from the outbreak of the Coronavirus has further extended into European markets as investors look for shelter, with equity markets down 3% in early trading and gold over 2% higher.

From an economic data perspective, German GDP numbers are due for release on Tuesday as are US Consumer Confidence releases. US New Home Sales are due for release on Wednesday with US GDP numbers released on Thursday.

CORONAVIRUS STOKES EUROPEAN FEARS

The number of coronavirus cases continues to rise with Italy being the latest country in focus where 4 people have thus far succumbed to the virus, albeit this pales to 2,593 Chinese deaths thus far. Italy has not been the only European country affected thus far with Germany, Spain and France also reporting cases.