Please find below our “Weekly Market Update” as at 24th January 2020
Blue Sky Comment
The week commenced with a feeling of negativity across investment markets, worried about the potential impact of the Coronavirus. Watch this space, but hopefully it can be contained.
At Blue Sky however, following our very successful seminar with LGT Vestra, we were all feeling more upbeat about the general outlook for the global economy, with a positive message for equities relative to other asset classes.
A great deal of discussion took place around the UK economy and there was an optimism in the air about the growth potential in certain sectors of the economy, such as sustainable investing, infrastructure and technology. Today the outlook was given a boost by encouraging data from the private sector. The Purchasing Managers index for services and manufacturing rose more strongly than was estimated – (52.4 from 49.3 in December with forecast of 50.6).
This news should be taken in context, bearing in mind that the economy had contracted more than expected in November. Remember of course, all such data is backward looking and we have had an election since! The markets tend to point the way and as I write, the FTSE 100 has risen by 1.48% (helped by European optimism as well) and the FTSE Mid 250 by 1%.
Europe responded in a similar way, but this was mainly due to better than expected economic data from Germany, beating analyst expectations. This afternoon the Dax has risen by 1.4%.
So, a good end to the week, delivering a much needed boost after the gloomy news throughout most of this week.
Have a good weekend.
The Blue Sky Investment Team
