Following, the global equity market falls in February caused by coronavirus (now referred to as Covid-19), March has continued this downward trend. The impact of social distancing and self-isolation is not only having an impact on our daily lives but has seen places of work, bars, restaurants, shops, etc. all close putting a huge pressure on the global economy.
All major governments have responded to the challenge with fiscal and financial stimulus for businesses and individuals alike.
Monthly performance to Mid-monthly performance end of February 2020 to 20* March 2020
FTSE 100 (UK) -9.7% -21.1%
Dow 30 (US) -10.1% -24.5%
Euro Stoxx 50 (Europe) -8.6% -23.5%
Nikkei 225 (Japan)* -8.9% -21.7%
*close is 19 March 2020 due to time difference
£ Sterling has also suffered during these difficult times and closed on 20 March at 1.16 US Dollars. This was 9.2% lower than the figure at the end of February.
It was a similar story against the Euro, £ Sterling closed on 20 March at 1.09 Euros, which was 6.4% lower than the February closing figure.
Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), will be reported on 25 March. It was 1.8% in January 2020 (this is January’s data which is reported in February). This was 0.4% higher than the previous month. The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 1.8% in January, up from 1.3% in December.
In moves reported to help to bolster cash flow for households and small businesses affected by the coronavirus, the Bank of England has cut interest rates twice during March. The first cut to 0.25% was on 13 March followed by a further cut to 0.1% on 19 March. The previous change was an increase to 0.75% in August 2018.
The Omnis Managed funds, Openwork Graphene Model Portfolios and Omnis Managed Portfolio Service provide you with a diversified asset allocation in line with your Attitude to Risk, investing in Developed Market Equities, such as UK, US, Europe and Asia Pacific as well as Emerging Market equities. Cautious and Balanced investors will also have significant holdings in UK and Global Bonds, as well as Alternative Strategies.
We believe this multi-asset approach aims to minimise global equity market falls in volatile periods.
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