We have for the past year held a heavy underweight position to European equities due to scepticism over the scale of fiscal spend that could be mustered to combat poor economic growth. It was expected that the coronavirus outbreak would…
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As Italian and Spanish new coronavirus case growth has slowed, sentiment has been buoyed, culminating in the US market’s 7% rally on Monday. Both countries represented the epicentre of the European impact and therefore are expected to be the first…
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There is a major debate raging over the balance between looking after the health of the public and looking after the health of the economy. Policy makers have weighed up the cost of a global recession and the virus death…
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The coronavirus is having a severe effect on global economic activity and amidst considerable uncertainty analysts and economists are trying to gauge the impact and update forecasts. Several are suggesting that the world economy will contract this year by 3%,…
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It is expected that the contraction in global activity in 2020 will be around 3% and this will exceed that seen in the first year of the Global Financial Crisis (GFC) of 2008 when global GDP contracted by 0.5%. However,…
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Markets rallied early this week as investors anticipated fiscal spending reaching the real economy and new coronavirus case growth slowed in Italy and Spain. Whilst the overall number of cases and deaths continues to mount in Italy the growth in…
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March 2020 has witnessed capital markets display quite extraordinary dynamics. In this past four weeks, we have experienced both bear market conditions with falls of in excess of 20% and bull market conditions with stock gains of over 20% in…
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Despite some concerns at the end of the day as the US Senate wrangled over the details of the $2trn US fiscal stimulus, US markets closed in positive territory for the second consecutive day. This may not sound remarkable but…
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US markets rallied by between 9% and 11% yesterday as investors priced in two pieces of good news. Donald Trump surprised markets by suggesting yesterday that the US lockdown could be over by Easter. Clearly this timeline is not in…
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