D-PIMS Weekly Market Update - Week of 20th to 26th April 2020
Today’s Monday Update:
Over the last week, most news was once again Coronavirus related:
• Monday saw New Zealand announce they would ease some of the world’s strictest lockdown measures from 27th April. However, in the first phase of easing the remaining restrictions will be similar to those currently in the UK, with shops and restaurants staying closed. This phase is due to last a further two weeks.
Britain’s Chancellor Rishi Sunak, launched a new scheme on Monday to protect fast-growing and innovative companies from the economic fallout caused by the coronavirus pandemic. The £1.25 billion package comprises a £500 million fund for high-growth companies and separate support totalling £750 million pounds for companies involved in research and development.
• U.S. crude oil bounced back into positive territory on Tuesday, after a historic plunge below zero overnight. This fall was due to a storage squeeze turning holders of oil futures contracts, into forced sellers.
• On Thursday the U.S. House of Representatives overwhelmingly approved a $484 billion coronavirus relief bill, funding small businesses and hospitals and pushing the total spending response to the crisis to an unprecedented near $3 trillion. The measure passed the Democratic-led House by a vote of 388-5. House members were meeting for the first time in weeks, because of the coronavirus pandemic.
• Britain’s second-largest housebuilder (Persimmon) said on Friday it will restart its construction sites in a phased manner from the next Monday, making it the third company in the sector during the week to announce commencement of work. The firm, which has not furloughed staff under the government’s COVID aid scheme, said it would only commence construction work where it was clear it was safe to do so.
Although work on building sites had not been barred in Britain, many companies shut down their construction sites last month due to concerns over social distancing and problems in obtaining materials. Persimmon’s move follows Taylor Wimpey and Vistry, who said they will restart construction in the next two weeks.
Also on Friday, the Financial Times reported that the Chancellor is preparing to offer 100% state backing on loans of up to £25,000 to the smallest UK companies, to support them throughout the coronavirus crisis
• Over the week the main Global Stockmarket indices were down, although not by a large amount (by recent standards). The D-PIMS Portfolios were mainly only slightly down, after a strong rise the previous week.
The value of investments and the income from them can fall as well as rise and you may not get back the original amount you invested.
Past Performance is no guarantee of, or guide to future returns.
The comments made above represent our interpretation of events and market views and are in no way a guarantee of future investment performance.