Gerald Fitzgerald’s Market Review November 30th
30 November 2020
LAST WEEK IN 30 SECONDS...
Encouraging signs on vaccine production saw global equities gain 1.7% last week. Global equities are now up 5.2% for the year to date and over 48.6% from March lows.
With the sign that ongoing business disruption may soon improve as a vaccine becomes available, oil prices moved strongly higher on expectations of increasing demand. West Texas Intermediate (WTI) finished the week up 9.1% whilst gold fell by 4.8% in the risk-on environment. Elsewhere UK trade discussions with the EU continued last week with little by way of accord reached.
THIS WEEK IN 30 SECONDS...
In not wanting to give the public perception that they have agreed a trade deal too early which may be bad for their economy, the UK is holding firm on reaching an accord with the European Union. With a deadline looming and little room for manoeuvre, you get the sense both sides will ratify a deal closer to the deadline, in turn giving the semblance of intense negotiations to the very last moment to secure the best deal possible.
From an economic point of view, Tuesday sees an update on Eurozone inflation whilst Eurozone retails sales are announced on Thursday. Across the Atlantic, US manufacturing PMI updates are released on Tuesday with services PMI updates on Thursday.
US SMALL CAP STOCKS SIZZLING
November has been positive for markets, particularly for US small cap stocks. The main US small cap index, the Russell 2000 Index, is headed for its best monthly return ever and is up 20.7% for the month thus far.