Gerald Fitzgerald’s Market Review March 29th
29 March 2021
LAST WEEK IN 30 SECONDS...
Equity markets generally trended upward last week despite pockets of localised volatility and continued rotation across equity sectors.
Oil sold off as the outlook most notably in Europe for lower demand saw oil prices moving lower. The movement was offset somewhat, however, by a ship getting stuck in the riprap or wall of the Suez Canal which cut off the main trade route between Asia and Europe.
Yields on high quality government bonds moved lower last week, including the US 10-year yield which finished the week down 0.07%.
THIS WEEK IN 30 SECONDS...
Investors will watch markets at the opening today and will look to avoid similar trades like Viacom CBS shares last week. The ongoing trade blockade in the Suez Canal continues with the potential for inflation spikes being generated on products and oil as a result of the increased cost and delay in global supply chains.
US President, Joe Biden, gives a speech on Wednesday where he is expected to provide an update on the $3tn fiscal stimulus for long-term projects including infrastructure, amidst Democrat’s efforts to push through the bill through Congress.
From an economic update, Eurozone inflation updates are released on Wednesday, US manufacturing PMIs on Thursday and US Nonfarm Payrolls on Friday.
MEDIA GIANT’S PLOT TWIST SCARES MARKETS
Viacom CBS, the US media giant, saw its share price plummet last week as speculation was rife that an investment firm called Archegos was behind a significant offloading in large quantities of the stock. Whilst the share price remains +29% for the year-to-date, such a violent price movement over one week has caught investors’ attention.