Gerald Fitzgerald’s Market Review January 20th
20 January 2020
LAST WEEK IN 30 SECONDS...
It was another strong week for global equities with the positive market momentum continuing unabated. Quarterly earnings results kicked off with US banks posting strong gains with further expectations of stimulus from China adding to the upside. This was after China announced annual Gross Domestic Product (GDP) growth for 2019 of 6.1%, not a bad figure despite being their lowest annual growth since 1990. Global equities in euro terms were up 1.7% for the week.
Elsewhere, crude oil prices crept lower with WTI Crude Oil down 0.9% as the grey clouds hanging over the Middle East continue to dissipate.
THIS WEEK IN 30 SECONDS...
The number of companies releasing their Q4 2019 earnings results sees a noted jump this week with over 750 corporate disclosures including Johnson & Johnson, Kinder Morgan and Netflix.
From an economic data perspective, the ECB interest rate decision is due for release on Thursday, with no change expected. The subsequent press conference may, however, signpost where Christine Lagarde’s intentions lie when it comes to drivers of any change in stance.
TECH STOCKS PRESS AHEAD
2020 has seen a continuation of positive market momentum driving equities higher. Once again it is technology stocks which are leading the charge with the tech sector up 5.6% in US$ terms for the year already. The materials sector languishes marginally below zero, however, meaning this rising tide is not lifting all boats.
By Gerald Fitzgerald, Investment Consultant
Gerald Fitzgerald joined Invesco’s Investment Consulting team in 2015 and has 10 years industry experience assisting clients with their investment & actuarial requirements. Gerald is a Qualified Financial Adviser (QFA) and a graduate of both University College Cork and University College Dublin.