D-PIMS Weekly Market Update - Week of 2nd to 8th November 2020
Today’s weekly update:
Over the course of last week, most headlines were related to the US Election or Coronavirus:
• On Monday Britain announced that it will launch a COVID-19 mass testing pilot scheme in Liverpool during the week, offering everyone in the city tests whether or not they have symptoms, in an attempt to find a better way to use testing to limit the spread of the coronavirus. The government said the Liverpool pilot would start on Friday using PCR swab tests, the default testing method to date, as well as new lateral flow tests aimed at delivering faster results without the need for laboratory processing.
Prime Minister Boris Johnson said that dependent on the pilot’s success, millions of the new rapid tests could be distributed elsewhere in the country before Christmas to help local authorities drive down transmission in their areas. “It is early days, but this kind of mass testing has the potential to be a powerful new weapon in our fight against COVID-19,” Johnson said in a statement.
• On Tuesday the US headed to the Polls to decide who will be the next US President, but with a record number of ‘mail in’ ballots sent it, was expected to take time to confirm results.
• On Wednesday, President Donald Trump falsely claimed victory over Democratic rival Joe Biden, with millions of votes still uncounted in a White House race that will not be decided until a handful of states complete vote-counting over coming days. Although, the early results appeared to rule out the Democrat’s ‘clean sweep’ that many had predicted.
Parliament approved a month-long lockdown in England, voting on Wednesday in favour of Prime Minister Boris Johnson’s plan to try to prevent COVID-19 running out of control and overwhelming health services. British Prime Minister Boris Johnson said on Wednesday his government would roll out new types of COVID-19 testing “on a scale never seen before” to stem the growing pandemic when the new lockdown in England expires on 2nd December.
• Democrat Joe Biden moved closer to victory in the U.S. presidential race on Thursday, as election officials tallied votes in the handful of states that will determine the outcome and protesters took to the streets. Incumbent President Donald Trump alleged fraud, without producing any evidence, filed lawsuits and called for recounts in a race yet to be decided two days after polls closed.
The Bank of England increased its already huge bond-buying stimulus by a bigger-than-expected £150 billion as it prepared for economic damage from new coronavirus lockdowns and the looming risk of Brexit. The BoE raised the size of its asset-purchase programme to £895 billion, £50 billion more than expected by most economists in a Reuters poll.
The Chancellor, Rishi Sunak ramped up his £200 billion economic rescue programme once again on Thursday, in a coordinated move with the Bank of England, which increased its already-huge purchases of government debt. As England went into a new month-long coronavirus lockdown, Sunak announced the latest in a string of expansions of massive government support in an attempt to slow a surge in unemployment.
• Democratic presidential candidate Joe Biden took the lead over President Donald Trump in the battleground states of Pennsylvania and Georgia for the first time on Friday, putting him on the verge of winning the White House. Biden would also win the election if he prevails the two other key states (Arizona and Nevada) where he held narrow leads, on Friday.
• Over the Weekend it become clear that Joe Biden had won the US election and would be the next US President, although there was no sign of Donald Trump conceding.
• Over the week, the main Global Stockmarkets jumped ahead, on prospects of a Democrat win in the US election, but without control of the Senate. This was seen as the ideal outcome, from a Market point of view. All the investment D-PIMS Portfolios were heavily up especially the higher risk Portfolios. They were helped by their diversification and exposure to Technology sectors.
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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.