Gerald Fitzgerald’s Market Review March 16th

LAST WEEK IN 30 SECONDS...

March madness took full hold last week as fear gripped markets with global equities down -8.0% on Monday and -8.2% on Thursday. This was despite significant intervention by central banks in an effort to stabilise markets. Volatility reigned supreme with global equities finishing the week down -10.7% in euro terms.

The European Central Bank provided a significant stimulus whilst surprisingly leaving headline interest rates unchanged. German 10-year bund yields finished the week 0.14% higher at -0.59%. Gold’s perception as a “safe haven” did not quite live up to expectations as the rout in global equity markets saw investors liquidate some positions. Gold finished the week down -8.2%.

THIS WEEK IN 30 SECONDS...

The US Federal Reserve surprised markets on Sunday announcing their latest interest rate policy with a cut of 1% and additional stimulus measures. As has become a common initial reaction following these measures, markets have not received this significant central bank intervention positively, however, with US markets anticipated to open significantly lower.

The fallout from Saudi Arabia’s decision to ramp up oil production remains very much in focus this week. Elsewhere, the coronavirus continues to challenge the economic and social fabric of global nations, with markets sensitive to news feeds on the level of containment and government pledges of support.

GLOBAL MARKETS BECOME THE DISCOUNT AISLE

Friday the 13th is unlucky for some but opportunity for others. With market volatility heightened, there are always winners and losers. Here is a random selection of what €100 would have purchased in equity markets over the year-to-date.