Gerald Fitzgerald’s Market Review January 6th
06 January 2020
LAST WEEK IN 30 SECONDS...
Last week was a short trading week for markets. Equity markets started the trading week brightly, building on gains seen in 2019. However, agitation in markets came to the fore on Friday when it was announced the US had assassinated Iranian Major-General Soleimani in a drone strike. The ensuing uncertainty fed into markets with oil prices rising whilst gold finished the 2020 trading session 1.8% higher and yields on 10-year US treasuries fell by 0.12%.
Despite the headwinds, global equities finished the short week session for 2020 up 0.7% in euro terms.
THIS WEEK IN 30 SECONDS...
Markets will be on edge this week as the rhetoric from Iran on retaliation is gauged by investors, with equities opening on a negative foothold and further gains seen in gold and oil prices.
From an economic data perspective, Eurozone inflation updates are due for release on Tuesday along with US non-manufacturing PMI output. China releases inflation data on Wednesday whilst US non-farm payrolls are released on Friday.
GFC RECOVERY CONTINUES
The Global Financial Crisis in 2008 proved an unsettling time for global equities. Since then the recovery has been robust. Global equities have delivered 12.3% annualised over the last decade, with 2019 delivering a decade best return and just shy of the gains generated in 2009.
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.