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Stephen Lennon’s Market Review March 27th

27 March 2018


Equity markets sold off last week with US markets in particular tracking lower. The S&P500
sold off by nearly 6% with the tech heavy NASDAQ down in excess of 6%. European
markets were also down with the German DAX 4% lower and the UK’s FTSE 100 3%
lower, with the latter now down nearly 10% for the year-to-date.

Political risk was at the forefront of the sell off, with investors reacting negatively to
everything Donald Trump related. For a person who is no stranger to storms, investors
sought refuge from the potential fallout of his continued protectionist stance, in addition
to queries as to whether some of his more progressive tax and regulatory reforms will

The week saw a rise in demand for secure instruments such as gold and high-quality
bonds. Gold rose over 2.5% while 10-year German government bonds dropped 4 basis
points and currently yield 0.53%, which is now over 20 basis points lower than midFebruary
(bond valuation and yield being inversely related).

Elsewhere, Jerome Powell, the new chairman of the US Federal Reserve approved the
anticipated 25 basis point increase in interest rates, in addition to upgrading the outlook
for GDP growth on the back of stronger economic activity.


US consumer indicators including Personal Spending and Income are due for release this week in addition to US Personal Consumption Expenditures (PCE) prices, a favoured metric of the US Federal Reserve. Elsewhere in the UK, Gross Domestic Product (GDP) growth metrics are expected on Wednesday.


On an annual basis Ireland consumes on average 16.3lbs (7.4kg) of chocolate per person making Irish people the third largest consumers globally. To put this into some festive perspective this equates to 74 Lindt Easter bunnies.

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Equities  Value 1 Wk Change YTD
FTSE World € 542.51 -5.00% -5.60%
NASDAQ Comp 6992.67 -6.54% 1.29%
S&P 500 2588.26 -5.95% -3.19%
FTSE 100 6921.94 -3.38% -9.96%
DAX 11886.31 -4.06% -7.98%


Bonds 10 Yr Value 1 Wk Change YTD
Germany 0.53% -0.04 0.11
Ireland 0.96% -0.04 0.29
UK 1.45% 0.02 0.26
Japan 0.02% -0.02 -0.03
USA 2.83% -0.02 0.42
Forex Value 1 Wk Change YTD
EUR/USD $1.236 0.65% 2.93%
EUR/GBP £0.874 -0.99% -1.59%
EUR/YEN ¥129.63 -0.51% -4.17%
USD/YEN ¥104.88 -1.15% -6.90%


Commodities Value 1 Wk Change YTD
WTI Crude $65.80 5.63% 8.83%
Brent Crude Oil $70.18 6.24% 5.36%
Gold 100 oz $1,348.55 2.59% 3.46%
DJ USB Index $87.44 0.09% -0.82%
Ger Fitzgerald

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.

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