Not a member? Register | Lost your password?

Welcome To PWM Wealth

Weekly Focus - 06 April 2020

published: 07 Apr
2020-04-07 08:49:04

Weekly Focus                   06 April 2020

Slowing infections rate will boost short term confidence
 

 

Stocks remained volatile and registered their worst quarterly performance since 2008. However an expansion in the manufacturing Purchasing Managers’ Index for China provided relief that other economies could rebound successfully from the contraction due to the lockdowns. Another positive news for the markets was a tweet from President Trump calling for a further fiscal expansion of USD 2 trillion to boost infrastructure spending. Long term treasury yields remained soft as the US FED continued its asset purchases and bond issuance in the corporate space picked up.

 

However yields on short term government bills remained relatively elevated due to an increase in issuance to finance fiscal spending. Issuance in the high yield space has yet to recover from the abrupt drop in indices and would not have been helped by the news of an increase in infections rate in New York and California on Wednesday. In a sign that volatility remains high, the Russell 2000 index fell by 7% on Wednesday.

 

The rate of increase of infections in Europe has been slowing and is an indication that the worst may be behind us. The chart above which shows the combined figures for Italy, Spain, Germany and France indicates that we may have reached a peak during the past week (Source J. Hopkins University/Algebris). However the cumulative number of infected people would still continue to rise until the end of this month at least and this will have an impact on the easing of confinement conditions. News from the US was also positive over the weekend as the rate of change of infections slowed. These imply that restrictions to economic activity will be gradually lifted during this quarter and an economic recovery in the major economies will start.

 

Having said that, the risks for equities depends on whether consumer and business confidence rebounds speedily (U-turn) and whether there is a second round of infections of covid19. Hence equity and credit exposure may be underweighted in portfolios. As deflationary pressures subside, equity exposures should return to normal. Credit exposures could take longer to normalise due to probable downgrades in this segment.   

 

 

Value

1 Week

YTD

Equity Indices

 

 

 

S&P500

2,632

0.14%

-18.59%

FTSE JSE All Share

46,240

6.51%

-19.00%

Stoxx50

2,796

1.10%

-25.34%

FTSE100

5,542

-0.39%

-26.52%

DAX

10,073

2.61%

-23.98%

CAC40

4,346

-0.74%

-27.30%

SMI Index

9,466

3.17%

-10.85%

FTSE MIB

16,892

0.11%

-28.14%

Shanghai Comp

2,764

0.61%

-9.38%

BSE Sensex

27,591

-2.99%

-33.12%

Nikkei

18,576

-2.67%

-21.48%

Major currencies

 

 

 

USDZAR

18.65

3.99%

33.25%

EURUSD

1.08

-2.24%

-3.67%

GBPUSD

1.23

-0.85%

-7.16%

USDCHF

0.98

1.99%

0.99%

EURCHF

1.06

-0.30%

-2.71%

GBPZAR

22.95

3.11%

23.63%

EURGBP

0.88

-1.40%

3.82%

USDAUD

1.64

1.21%

15.18%

Dollar Index

101

1.43%

4.84%

 Commodities 

 

 

 

Brent

32.66

43.32%

-50.58%

WTI Oil

26.66

32.80%

-56.31%

Copper

2.21

1.89%

-20.88%

Platinum

732.10

1.19%

-24.65%

Sugar

10.46

-2.80%

-22.28%

Corn

328.12

-3.85%

-15.38%

Gold

1,690.30

2.91%

10.57%

 Sovereign Yields

 

 

 

US10Y

0.66

-8.73%

-65.45%

UK10Y - price

136.49

-0.14%

3.90%

Germany10Y

-0.43

-14.52%

126.74%

 Deposit rates with selected banks

 

The MCB Ltd, 6M- USD 1.20%

 

 

 

     

Contact us: Durban +27 (0) 31 566 3365 | CPT +27 ( 0 ) 21 851 0920 | JHB +27 ( 0 ) 11 017 7230 | Email: enquiries@pwm-wealth.com

Disclaimer: The research report has been prepared for information purposes and does not constitute an offer. While reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and the company accepts no liability whatsoever for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this report
 

 


Weekly Focus - 30 March 2020

published: 31 Mar
2020-03-31 11:29:38
...read full article


Weekly Focus - 16 March 2020

published: 19 Mar
2020-03-19 09:14:36
...read full article


Weekly Focus - 24 February 2020

published: 27 Feb
2020-02-27 16:25:54
...read full article


Weekly Focus - 17 February 2020

published: 10 Feb
2020-02-10 23:28:49
...read full article


Weekly Focus - 03 February 2020

published: 06 Feb
2020-02-06 11:32:18
...read full article


Weekly Focus - 27 January 2020

published: 28 Jan
2020-01-28 23:49:42
...read full article


Weekly Focus - 13 January 2020

published: 15 Jan
2020-01-15 10:02:38
...read full article


Weekly Focus - 09 December 2019

published: 2019-12-11
2019-12-11 22:04:33
...read full article


Weekly Focus - 02 December 2019

published: 2019-12-05
2019-12-05 11:56:44
...read full article


Weekly Focus - 25 November 2019

published: 2019-11-29
2019-11-29 09:52:21
...read full article


Weekly Focus - 18 November 2019

published: 2019-11-19
2019-11-19 10:56:30
...read full article


Weekly Market Focus - 28 October 2019

published: 2019-11-01
2019-11-01 14:23:45
...read full article


Weekly Market Focus - 21 October 2019

published: 2019-10-24
2019-10-24 11:26:00
...read full article


Weekly Market Focus - 14 October 2019

published: 2019-10-15
2019-10-15 09:06:56
...read full article


Weekly Market Focus - 30 September 2019

published: 2019-10-03
2019-10-03 11:27:47
...read full article


Weekly Market Focus - 23 September 2019

published: 2019-09-25
2019-09-25 16:09:51
...read full article


Weekly Market Focus - 10 September 2019

published: 2019-09-13
2019-09-13 08:21:10
...read full article


Weekly Market Focus - 02 September 2019

published: 2019-09-03
2019-09-03 12:32:32
...read full article


Weekly Market Focus - 26 August 2019

published: 2019-08-27
2019-08-27 14:40:23
...read full article


Weekly Market Focus - 19 August 2019

published: 2019-08-20
2019-08-20 15:33:16
...read full article


Weekly Market Focus - 05 August 2019

published: 2019-08-06
2019-08-06 08:27:46
...read full article


Weekly Market Focus - 29 July 2019

published: 2019-07-31
2019-07-31 16:42:36
...read full article


Weekly Market Focus - 22 July 2019

published: 2019-07-23
2019-07-23 08:35:15
...read full article


Weekly Market Focus - 15 July 2019

published: 2019-07-16
2019-07-16 15:04:12
...read full article


Weekly Market Focus - 01 July 2019

published: 2019-07-02
2019-07-02 13:07:03
...read full article


Weekly Market Focus - 24 June 2019

published: 2019-06-28
2019-06-28 08:32:59
...read full article


Weekly Market Focus - 17 June 2019

published: 2019-06-18
2019-06-18 09:04:59
...read full article


Weekly Market Focus - 10 June 2019

published: 2019-06-11
2019-06-11 21:18:39
...read full article


Weekly Market Focus - 28 May 2019

published: 2019-05-28
2019-05-28 08:20:55
...read full article


Weekly Market Focus - 20 May 2019

published: 2019-05-22
2019-05-22 16:01:15
...read full article


Weekly Market Focus - 13 May 2019

published: 2019-05-14
2019-05-14 08:02:13
...read full article


Weekly Market Focus - 22 April 2019

published: 2019-04-23
2019-04-23 16:00:54
...read full article


Weekly Market Focus - 08 April 2019

published: 2019-04-09
2019-04-09 12:58:37
...read full article


Weekly Market Focus - 25 March 2019

published: 2019-03-26
2019-03-26 15:40:52
...read full article


Weekly Market Focus - 18 March 2019

published: 2019-03-22
2019-03-22 08:29:23
...read full article


Weekly Market Focus - 11 March 2019

published: 2019-03-14
2019-03-14 08:15:56
...read full article


Weekly Market Focus - 05 March 2019

published: 2019-03-05
2019-03-05 16:19:20
...read full article


Weekly Market Focus - 25 February 2019

published: 2019-02-26
2019-02-26 09:20:13
...read full article


Budget Speech 2019

published: 2019-02-21
2019-02-21 08:06:50
...read full article


Weekly Market Focus - 18 February 2019

published: 2019-02-19
2019-02-19 08:41:56
...read full article


Weekly Market Focus - 11 February 2019

published: 2019-02-12
2019-02-12 21:39:10
...read full article


Weekly Market Focus - 04 February 2019

published: 2019-02-05
2019-02-05 14:23:41
...read full article


Weekly Market Focus - 28 January 2019

published: 2019-01-28
2019-01-28 21:48:43
...read full article


Weekly Market Focus 14 January 2019

published: 2019-01-15
2019-01-15 08:19:15
...read full article


Weekly Market Focus 10 December 2018

published: 2018-12-13
2018-12-13 22:34:27
...read full article


Weekly Market Focus 03 December 2018

published: 2018-12-04
2018-12-04 15:21:39
...read full article


Weekly Market Focus 26 November 2018

published: 2018-11-26
2018-11-26 23:05:52
...read full article


Weekly Market Focus 19 November 2018

published: 2018-11-20
2018-11-20 09:10:05
...read full article


Weekly Market Focus 12 November 2018

published: 2018-11-13
2018-11-13 13:57:35
...read full article


Weekly Market Focus 05 November 2018

published: 2018-11-07
2018-11-07 08:33:44
...read full article


Weekly Market Focus 29 October 2018

published: 2018-10-30
2018-10-30 12:11:54
...read full article


Weekly Market Focus 22 October 2018

published: 2018-10-23
2018-10-23 08:21:03
...read full article


Weekly Market Focus 15 October 2018

published: 2018-10-17
2018-10-17 08:59:41
...read full article


Weekly Market Focus 08 October 2018

published: 2018-10-09
2018-10-09 22:01:07
...read full article


Weekly Market Focus 01 October 2018

published: 2018-10-01
2018-10-01 22:40:04
...read full article


Weekly Market Focus 17 September 2018

published: 2018-09-18
2018-09-18 08:18:38
...read full article


Weekly Market Focus 10 September 2018

published: 2018-09-11
2018-09-11 08:49:13
...read full article


Weekly Market Focus 27 August 2018

published: 2018-08-27
2018-08-27 09:28:51
...read full article


Weekly Market Focus 20 August 2018

published: 2018-08-22
2018-08-22 09:35:39
...read full article


Weekly Market Focus 13 August 2018

published: 2018-08-14
2018-08-14 09:07:20
...read full article


Weekly Market Focus 06 August 2018

published: 2018-08-07
2018-08-07 09:22:28
...read full article


Weekly Market Focus 30 July 2018

published: 2018-07-31
2018-07-31 10:44:05
...read full article


Weekly Market Focus 23 July 2018

published: 2018-07-24
2018-07-24 09:40:33
...read full article


Weekly Market Focus 16 July 2018

published: 2018-07-17
2018-07-17 08:59:17
...read full article


Weekly Market Focus 09 July 2018

published: 2018-07-09
2018-07-09 19:42:36
...read full article


Weekly Market Focus 02 July 2018

published: 2018-07-03
2018-07-03 10:34:29
...read full article


Budget Speech 2018/19 Tax Year Summary

published: 2018-02-22
2018-02-22 07:48:31
...read full article


2018 - A brave new world

published: 2018-01-29
2018-01-29 07:45:40
...read full article


ANC Elective Conference results - what to expect next

published: 2017-12-19
2017-12-19 13:06:31
...read full article


Market Review of 2nd quarter 2017

published: 2017-07-13
2017-07-13 15:59:30
...read full article


Stay invested despite downgrades, say analysts

published: 2017-04-25
2017-04-25 11:15:25
...read full article


2017/2018 Budget

published: 2017-02-23
2017-02-23 17:28:20
...read full article


Have you considered topping up your RA before the end of the tax year.

published: 2017-02-14
2017-02-14 08:47:13
...read full article


2016: A year of ‘surprise and rapid rotation’

published: 2017-01-17
2017-01-17 15:39:11
...read full article


Budget 2016: What you need to know

published: 2016-02-25
2016-02-25 14:48:57
...read full article


Retirement Reform Update

published: 2016-01-14
2016-01-14 16:35:46
...read full article


Pegasus re-brands itself

published: 2015-03-12
2015-03-12 10:06:26
...read full article


Tax Advantages of RA’s – Retirement Annuities

published: 2015-01-26
2015-01-26 14:01:53
...read full article


What is Regulation 28

published: 2015-01-26
2015-01-26 13:59:52
...read full article


Structured Investment Products ~ Offering Growth & Capital Protection

published: 2014-05-06
2014-05-06 16:26:08
...read full article


Let Us Know How We're Doing

published: 2014-04-15
2014-04-15 16:29:45
...read full article


Budget Highlights

published: 2014-02-27
2014-02-27 11:43:12
...read full article


The FUNDamentals of Tax Efficiency

published: 2014-02-04
2014-02-04 14:58:06
...read full article


Keith O'Reilly joins Pegasus JHB

published: 2013-09-25
2013-09-25 16:30:57
...read full article


The low-down on the FED’s Quantitative Easing (QE) Plan

published: 2013-09-10
2013-09-10 16:15:57
...read full article


New Johannesburg Offices Open

published: 2013-07-11
2013-07-11 15:44:54
...read full article


Financial Services and Retirement Reform

published: 2013-03-07
2013-03-07 11:04:18
...read full article


Commentary on the budget speech

published: 2013-02-28
2013-02-28 15:41:50
...read full article


A tax-efficient way to save for retirement

published: 2013-01-08
2013-01-08 11:38:25
...read full article

Twitter
Facebook
Connect with us