Gerald Fitzgerald’s Market Review November 16th
16 November 2020
LAST WEEK IN 30 SECONDS...
Markets were buoyed last week on the news that a potential vaccine for Covid-19 is edging closer. Whilst global equities in euro terms were positive by 3.0% for the week, the biggest shift in investor sentiment saw global value stocks outperforming their growth counterparts by over 6.0%.
With the positive market sentiment that ongoing business disruption may just be edging nearer to a close, global government bond yields rose whilst gold fell by 3.0%.
THIS WEEK IN 30 SECONDS...
The ongoing political turbulence in 10 Downing Street gives the impression of a government lacking cohesion. Nonetheless, the number of days remaining to agree a trade deal with the European Union has narrowed considerably so this week could be a pivotal week for a deal to be agreed by both sides.
From an economic point of view, Tuesday sees US retail sales and industrial production updates, whilst Eurozone inflation updates are due on Wednesday.
The week ahead also sees a raft of US corporate retail updates from outlets including, Walmart, L Brands and Home Depot.
UK EQUITIES SURGE ON VACCINE HOPES
The FTSE All-Share index was up 7.0% last week, driven by news that a Covid-19 vaccine is one step further to full production. The UK equity index was up by 4.8% on Monday alone on the news, the second highest daily return this year for UK equities.