Market Monitor – 23 March 2020
Wall Street was the most notable loser among global stock markets last week, with both the Dow Jones Industrial Average and S&P 500 indices recording their worst seven-day performance since the depths of the financial crisis in 2008.
Previously unthinkable
Our fixed income team provide their weekly snapshot of market events.
Coronavirus: Earthquakes, aftershocks and recovery
Aftershocks are a frequent and disruptive result of an earthquake caused by the displacement effects of the main shock. While alarming themselves, they are often a reasonably predictable outcome of the main event. Large earthquakes can have hundreds of aftershocks. While there are familiar patterns to the distribution and magnitude of aftershocks, there can be surprises. However, they typically tend to decline in magnitude and frequency with time.
Even lower for possibly longer
In a rare inter-meeting policy move on 3 March, the Federal Reserve Board Open Market Committee (FOMC) announced a 50 basis point rate cut in the Federal funds rate in an effort to mitigate the economic and market impacts of the novel coronavirus.
Recession risks: Coronavirus + oil shock + what else?
To begin with, supply was the concern, but now demand is at risk. What is without doubt is that recession risks are elevated.Recession
Fixed Income: Coronavirus market volatility – performance update
Our Fixed Income team look at how their markets have reacted to the developing Covid-19 situation, and what the impact on portfolios might be.
Bond investing in uncertain times
It is hard to ignore how times have changed. The deliberate actions to “flatten the curve” of COVID-19 can have a critical impact to manage the spread of the virus and the burden on the healthcare system. However, the more significant the response, the greater the economic impact in the short run.
Budget 2020 preview
The start of the year is the ideal time to overhaul your finances and make sure you’re not paying over the odds on outgoings such as mortgage and utilities bills, while also checking your savings and investments are on course to meet your medium- and long-term goals.
US High Yield: Market volatility update
Markets including high yield remain unsettled as the difficulties of forecasting this unprecedented pandemic and the associated individual, company and government responses continue to develop. The purpose of this update is to provide some context on what is happening in US high yield and to frame a few things that we expect going forward.
High Yield: Coronavirus market volatility – performance update
Our High Yield team look at how their markets have reacted to the developing Covid-19 situation, and what the impact on portfolios might be.
