D-PIMS Weekly Market Update - Week of 17th to 23rd February 2020
Apart from the unfolding Coronavirus crisis, there was not a great deal of economic/ market occurrences over the last week:
• British inflation unexpectedly rose to a six-month high in January, pushed up by higher petrol prices and a smaller-than-usual drop in airfares, official data showed on Wednesday. Consumer prices rose at an annual rate of 1.8% compared with 1.3% in December, not far off the Bank of England’s 2% target. A Reuters poll of economists had forecast a rate of 1.6%.
• Saturday saw the far left US Democratic candidate Bernie Sanders, cementing his front runner position. This was after winning by a large margin in Nevada state, following on from his earlier win in New Hampshire. Markets see more chance of a second term for Donald Trump if Bernie Sanders does become the Democrat’s nominee.
• The weekend also saw a surge in Coronavirus cases in Italy, and with open borders across Europe the fear of further outbreaks elsewhere has risen.
• Over the week Global Stockmarkets were down especially in Sterling terms. The D-PIMS Portfolios fared better and all had at least a small positive showing. The coming week is likely to see Markets being very jittery and nervous over the escalation of Coronavirus cases in Europe and the fear a possible economic slowdown resulting.
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The comments made above represent our interpretation of events and market views and are in no way a guarantee of future investment performance.