Our Weekly Podcast and Market Overview from Quilter Cheviot
Covid, Cummings, Consumer habits & China
By Alan McIntosh, Chief Investment Strategist
“Even before the dust has settled on the US election (outcome still disputed by Donald Trump) another piece of news moved stock markets substantially last week. On Monday, Pfizer announced that the vaccine it was jointly developing with BioNTech had shown 90% effectiveness in trials.
Equity markets soared on the news, with particular emphasis on the share prices of companies currently impacted by lockdown restrictions. By contrast, “stay at home” beneficiaries such as the big US technology and streaming names saw profit taking. The UK was the one of the best-performing major markets, rising by 7%. The US lagged, advancing by 2%, reflecting the more growth and tech-focused composition of its index. The question is whether this rotation continues. In the short-term, Covid cases continue to rise sharply in the US. With no fresh stimulus package in place yet, this will negatively impact on economic data in Q4 as cities increase restrictions on movement. More optimistically, however, if the vaccine(s) are successfully rolled out in the early/ middle part of next year, things could be looking a lot better for the second half of 2021. Markets are already looking ahead to this prospect… ”
Weekly podcast: Markets Uncut
“This week, Investment Manager David Henry is joined by Head of Fixed Interest, Richard Carter and Equity Analyst, Amisha Chohan. They discuss the various news stories from the last week and their impact on markets, including whether the vaccine announcement means companies might start to spend and invest for the future…”