Gerald Fitzgerald’s Market Review November 9th
09 November 2020
LAST WEEK IN 30 SECONDS...
Last week saw markets in a jubilant mood as the final votes were cast and tallied in the race to become the 46th US president. With the outcome pointing to Joe Biden becoming President-elect and Republicans retaining their Senate majority, equity markets delivered an exceptional relief rally as the tech heavy NASDAQ finished the week up +9.0%.
The euro gained against major peers over the week and was notably stronger against the US dollar ending up +1.9% for the period. With concerns on Covid-19 cases temporarily pushed to one side, the week finished with global equities up +5.7% in euro terms.
THIS WEEK IN 30 SECONDS...
This week sees a continuation of the US election results with Donald Trump challenging the outcome. Despite this, the magnitude of victory for Joe Biden and lack of compelling arguments to this challenge points to the result standing which markets have priced in.
From an economic point of view, Monday sees Chinese inflation updates, Tuesday sees a Euro economic sentiment survey update whilst Thursday sees US inflation updates.
Quarterly earnings results continue this week with over 5,000 company updates including internet giant Tencent this Wednesday and fast food provider McDonalds disclosing earnings results on Monday.
BITCOIN BOUNCES BACK, AGAIN!
The cryptocurrency mania that saw Bitcoin’s steep ascent in 2017 may have subsided but recent appreciation in the currency has seen Bitcoin rise above $15k for the first time since January 2018 and the currency is now up over 110% for the year–to-date.