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Gerald Fitzgerald’s Market Review September 21st

21 September 2020

 

 

LAST WEEK IN 30 SECONDS...

Markets moved sideways last week as increasing numbers of reported coronavirus cases saw investor sentiment dip on the threat of a second wave of the virus. Central bank discussions last week saw little by way of change other than a commitment to more of the same support should conditions deteriorate.

Closer to home, sentiment soured on the prospect of the UK signing a trade deal before year-end with the European Union. Despite both sides set to lose without a trade deal being secured, both sides are standing firm on their positions. The euro gave up some ground on the pound, finishing the week down 1.1%.

 

THIS WEEK IN 30 SECONDS...

With the prospects of a vaccine not being available until at least 2021, the rise in coronavirus cases continues to have investors on edge. Markets trended lower on early trading as a result. Jerome Powell, US Federal Reserve Chair, testifies to Congress during the week on the economic environment with investors eyeing for any informative crumbs on further stimulus.

From an economic data perspective, Eurozone Composite PMIs are announced on Wednesday with an update on European consumer confidence on Tuesday. Across the Atlantic, jobless claims updates are released on Thursday with durable goods orders on Friday. With the US presidential election drawing closer, Donald Trump will be eagerly watching for accommodative data releases to draw on to help his re-election prospects.

 

MARKET RECOVERIES: A TALE OF TWO REGIONS

The largest Initial Public Offering (IPO) for a software company took place last week with Snowflake listing on the New York Stock Exchange. With the initial IPO price for the cloud based stock being revised upwards to $100-$150 a share on launch, the subsequent demand saw the company finish its first week at $240 a share.

Ger Fitzgerald

By Gerald Fitzgerald,