Gerald Fitzgerald’s Market Review November 19th
19 November 2018
LAST WEEK IN 30 SECONDS...
Brexit dominated headlines last week as Theresa May pressed for cabinet support of the draft withdrawal treaty with the EU. Numerous resignations followed further undermining the potential that the deal will be approved by Parliament. Currency markets were particularly volatile with the Euro strengthening +1.9% versus Sterling.
Market sentiment was broadly negative last week as technology led the sell-off following chipmakers lowering their forecasts. Technology sector was down -2.4% whilst global equities ended the week -1.7% lower. “Safe” haven assets gained last week on the back of the uncertain outlook with gold +0.8% and US treasuries 0.1% lower.
THIS WEEK IN 30 SECONDS...
All eyes are on Europe this week as Theresa May attempts to press ahead with gaining support for the withdrawal treaty. On Wednesday the European Commission will give further insight on their next steps following the Italian government’s refusal to amend their debt raising budget proposal.
From an economic data perspective, Eurozone and US Purchasing Managers Index (PMI) manufacturing data are due out later this week.
CRYPTO BEARS – NOT JUST FOR CHRISTMAS
Whilst speculation continues as to timing of the next global downturn, the bears have gathered en masse within cryptocurrency. Bitcoin prices have now fallen 74% since scaling dizzying highs back in December 2017. The value of this intangible asset is, however, no stranger to significant price fluctuations in the past.
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.