Gerald Fitzgerald’s Market Review September 7th

LAST WEEK IN 30 SECONDS...

Global equities did the hokey pokey last week firstly breaking back into positive territory for the YTD for the first time since the 25th February. The week ended on negative note, however, with equities finishing the week in negative territory as a tech led retreat saw headline equities dropping back further.

The shift in market sentiment towards the latter part of last week saw yields on high quality bonds falling with the 10-year German yield down 0.07% to finish the week at -0.48%. Meanwhile, the euro pared some gains last week versus its transatlantic neighbour falling back to $1.18.

THIS WEEK IN 30 SECONDS...

With the US presidential election only 8 weeks away the media amplification of both candidates’ election platforms has increased market uncertainty as to the potential impact on global markets of either candidates’ success.

he week begins with US markets closed today for US Labour Day. From an economic point of view, the week sees a raft of data releases including Eurozone GDP updates on Tuesday and the ECB policy decision on interest rates on Thursday, albeit once again no changes are anticipated. Friday sees US inflation releases for the first time since the US Federal Reserve changed the dial on its inflation target. US inflation, however, is anticipated to remain hovering around 1%.

THE A STUDENT OF 2020

The resilience of Apple’s business model has seen the company’s share price appreciate by almost two thirds thus far in 2020. Looking at the return since the lows on the 23rd March the returns are even more impressive with the stock up 117%. With this appreciation, Apple now has a market size which is close to that of the entire FTSE 100, an index of the UK’s largest 100 listed companies.
Source: Refinitiv