Market Update: Coronavirus concerns continue to hover over markets
Tuesday 10th of March 2020
LAST WEEK – KEY TAKEAWAYS
Coronavirus: Falling oil prices halt rate cut rebound
- Concerns about the impact of the coronavirus on the global economy continued to hit markets as the number of new cases rose around the world;
- The prospect of central bank support temporarily boosted shares in the middle of the week as the Federal Reserve (the US central bank) cut interest rates by 0.5%[1];
- However, falling oil prices dragged down shares at the end of the week after the Organization of the Petroleum Exporting Countries (OPEC) failed to agree...
Investment Update: Falling oil prices drag down shares
Monday 9th of March 2020
A drop in oil prices sent international shares tumbling when stock markets opened this morning.
Concerns about the impact of the coronavirus on global economic growth have weighed on demand for oil. Over the weekend, talks took place between the Organization of the Petroleum Exporting Countries (OPEC) and other producers about cutting output to support oil prices, but they failed to come to an agreement. In response, Saudi Arabia, OPEC’s de facto leader, said it would raise production and lower prices in an effort to preserve its market sha...
Coronavirus Dents Recovery Hopes
Monday 2nd of March 2020
Data released by ONS has confirmed the UK economy stalled in the final quarter of 2019 and the economic fallout from the coronavirus outbreak looks set to hinder prospects of an imminent recovery.
Gross domestic product (GDP) statistics published by ONS showed the UK economy saw zero growth across the final three months of 2019, down from a rise of 0.5% in the preceding quarter. This left last year’s annual GDP growth rate at 1.4%, marginally up from 2018, but still one of the weakest rates of expansion recorded since the 2008 fin...
Market Update: Coronavirus: Shares fall as investors switch to bonds.
Monday 2nd of March 2020
LAST WEEK – KEY TAKEAWAYS
Coronavirus: Shares fall as investors switch to bonds
- Concerns about the coronavirus continued to weigh on the markets, as global shares experienced their worst week since the 2008 financial crisis;
- Meanwhile, the yield (income paid) on long-term US government bonds fell below the yield on their short-term equivalents- an effect known as the inversion of the yield curve which has in the past preceded an economic slowdown.
- Omnis view: Investors have switched their money out of shares and into what are traditi...
FACED WITH THE THREAT OF THE CORONAVIRUS, INVESTORS HAVE ENGAGED IN A ‘FLIGHT TO SAFETY
Friday 28th of February 2020
Following its emergence in central China in mid-January, the coronavirus has now been reported in 56 different countries. Of the more than 83,000 confirmed cases, nearly 3,000 have proved fatal. Though the rate of new infections in China has stabilised, and though the proportion of patients recovering has improved, the international spread of the virus has caused a great deal of alarm. As workers, shoppers and tourists stay home – either by choice or by government edict – expectations for economic growth and corporate profits have been rev...
New Cases of coronavirus weigh on shares
Wednesday 26th of February 2020
Global stock markets fell sharply yesterday (Monday 24 February) as reports from Japan, South Korea, Iran and Italy stoked fears over the global spread of the coronavirus. Among the notable falls, FTSE MIB index of Italian shares ended the day 5.4% lower after authorities moved to lock down ten towns in the country’s north to prevent the virus spreading. Meanwhile, the S&P 500 index of US shares fell 3.4%, erasing its year-to-date gains. While stock markets dropped, safe haven assets which investors typically turn to in times of market tur...
Market Update: New cases of coronavirus weigh on shares
Monday 24th of February 2020
LAST WEEK – KEY TAKEAWAYS
Coronavirus: Shares fall as new cases reported
- Measures taken by the People’s Bank of China (the Chinese central bank) to offset the impact of the coronavirus helped global shares rally early in the week;
- However, investors shifted their money out of shares and into government bonds- considered safe haven assets during times of market turbulence- at the end of the week as new cases were reported in China, South Korea and Europe.
- Omnis view: To a degree, shares are relying on support from the Chinese central ba...
Market Update: Markets remain sensitive to coronavirus developments
Monday 17th of February 2020
Last Week - Key Takeaways
Coronavirus: Markets await tipping point
- Global shares rallied at the start of the week as the spread of the coronavirus appeared to be slowing;
- However, they handed some of those gains back after China reported a rise in the number of new cases due to a change in the method officials are using to monitor the outbreak.
- Omnis view: Shares continue to fluctuate according to news of the spread of the virus. The markets are still waiting for new cases to plateau because that will mean it is under control and the...
Market Update: Global shares recover as China responds to coronavirus
Monday 10th of February 2020
LAST WEEK – KEY Takeaways
China: Central bank response to coronavirus reassures markets
- The coronavirus weighed heavily on Chinese shares at the start of the week after the country’s stock market reopened following the new year holiday;
- However, Chinese shares recovered and other global shares rose as the People’s Bank of China took measures to support the domestic economy.
- Omnis view: There were signs that the spread of the virus was slowing, although it does not appear to have reached a tipping point yet. While the Chinese central ba...
Market Update: Concerns about coronavirus continue to hover over markets
Monday 3rd of February 2020
LAST WEEK – KEY Takeaways
Global: China strives to contain coronavirus
- Global shares fell as the number of cases and the death toll from the coronavirus rose although the spread outside of China has been limited;
- The World Health Organization declared the outbreak an emergency, but it also said measures that disrupt international travel and trade were unnecessary.
- Omnis view: Just as there were signs of a recovery in global economic growth, the coronavirus is likely to curtail activity in China to such an extent that it impacts other...
