Gerald Fitzgeral’s Market Review June 24th
24 June 2019
LAST WEEK IN 30 SECONDS...
Soft central bank tones supported markets last week with notably the ECB president Mario Draghi offering further market stimulus should it be necessary. Global equity markets marched higher, with the US NASDAQ over 3% higher over the week. Despite a stronger Euro versus its developed peers, global equities in Euro terms, as measured by the FTSE World, were approximately 1.5% higher over the period.
With the continued accommodative central bank policy, yields on global government bonds fell further. The German 10 year bond yield touched -0.32% at one point last week before closing the week at -0.28%.
THIS WEEK IN 30 SECONDS...
The G20 summit takes place this week with particular focus reserved for the interaction between US President Donald Trump and Chinese President Xi Jingping at the summit. Expectations are high for a positive resolution to the ongoing trade stand-off with the potential for increased market volatility should the conversation prove inconclusive.
From a data perspective US consumer confidence figures are due for release on Tuesday with Eurozone and US inflation updates due for release on Friday.
CRYPTOCURRENCY ROLLERCOASTER CONTINUES
Facebook last week publicised the firm’s movement into the crypto currency space and the launch of the digital currency Libra. Interest in other cryptocurrency has increased in recent months with Bitcoin now back trading above $10,000, having fallen below $3,500 earlier this year. The white knuckle rollercoaster ride continues.
By Gerald Fitzgerald, Investment Consultant
Gerald Fitzgerald joined Invesco’s Investment Consulting team in 2015 and has 10 years industry experience assisting clients with their investment & actuarial requirements. Gerald is a Qualified Financial Adviser (QFA) and a graduate of both University College Cork and University College Dublin.