Gerald Fitzgerald’s Market Review November 23rd
23 November 2020
LAST WEEK IN 30 SECONDS...
Equities moved largely sideways last week as investor optimism finished the week on a sombre note.
Whilst the results of ongoing vaccine trials have been received positively, the risk-on sentiment dampened somewhat by a further increase in Covid-19 cases globally. Coupled with mediocre economic data results, including US retail sales increasing at the slowest rate in 6-months, and an emerging strain in opinion between the US Federal Reserve and US Treasury on lending powers, global equities finished the week 0.3% higher in euro terms.
THIS WEEK IN 30 SECONDS...
UK trade negotiations with the EU were curtailed last week as a member of the EU negotiating team contracted Covid-19. This puts even more emphasis on momentum being required in negotiations as the sand in the hourglass ebbs away.
From an economic point of view, Monday sees an update to European Services and Manufacturing PMIs whilst Wednesday sees US durable goods orders updates along with US GDP updates.
From a corporate perspective, the week ahead sees Gazprom, Tiffany & Co and Pernod Ricard providing revenue and earnings updates to markets. US Markets are closed on Thursday for Thanksgiving.
ENERGY STOCKS ENJOY HOT NOVEMBER
The energy sector has endured a tough 2020, however, with the onset of winter the picture has brightened. With vaccine production set in train, the potential for a rebound in consumer demand has seen the sector up over 25% in US$ terms so far this month.