Week in Review
WEEK ENDING APRIL 3rd 2020
Market Summary
The worst quarter for risk assets since the Global Financial Crisis came to an end this week with the S&P down over 22% YTD. Despite a slue of fiscal and monetary responses, investors remained focused on the virus infection rate data above all else. Growing uncertainty around the potential duration and severity of the virus pushed risk assets lower.
EQUITY
Muted market movements relative to the seismic shifts of previous weeks. Pushed lower by continued virus uncertainty and startling US Jobless claims data.
BONDS
Treasuries continued to play their defensive role as virus driven demand pushed yields lower resulting in positive returns for Treasury holders
CURRENCY
Cash is king in a crisis and the US Dollar is King of cash, ending the week stronger with the Euro giving up it’s recent gains as the safe-haven plays continue
COMMODITIES
Crude Oil recorded its highest weekly return in history, Jumping 40% in a matter.
SECTOR BREAKDOWN
MARKET OUTLOOK
With little respite in sight, markets focus in on Europe to determine a timeline for the virus with recent data suggesting that the virus may have peaked in the region offering a glimmer of hope. With last week’s US initial Jobless claims figures nearly 10 times higher than any pre-virus point in history, financial strain rife across all industry sectors and credit spreads wider than at any point since 08/09, clarity around the duration of the virus is paramount as the economic wound deepens with each passing day.
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