News

We expect markets to remain volatile. A rebound in oil prices recently had helped, however oil slumped in late trade as short term demand is still questioned despite the possibility of Saudis and Russian cutting production.

Global markets were mixed overnight with the US market (S&P 500 +3.4%) adding to its rally as Bernie Sanders dropped out from the Presidential race -the market saw political and economic concerns from his far left policies.

While a welcome rally, we are still not out of the volatility yet and investors should stage into the market with caution.

We think it is time to start “averaging into” stocks, as it appears the market is starting to now differentiate between the stocks and sectors which will face major problems for an extended period and those which are relatively immune.

It does appear the market is starting to now differentiate between the stocks and sectors which will face major problems for an extended period (e.g. retail/ tourism / airlines / property trusts), and those which are relatively immune and / or benefit e.g

Global markets were higher overnight, even as weekly US jobless claims surged to 6.65 million people in the week ended March 28, as businesses closed around the nation to try and mitigate the coronavirus.

Global markets started the quarter with a sell-off, with the US markets down (S&P 500 index – 4%) after US officials reported covid-19 could kill 100,000 to 240,000 Americans.

The US market, measured by the S&P 500 ends the 1st quarter of 2020 down -20%, making it its worst quarter since the 2008 GFC. The Dow Jones index closed the quarter down -23.2%, its worst since 1987, as the covid-19 pandemic wreaks havoc around the world

The Australian market surged +7% on the back of a massive $130bn government support package.