Please find below our “Weekly Market Update” as at 10th January 2020
Blue Sky Comment
Equities continue to rise
The momentum for equity prices has continued into the first half of January with European stocks, yes European stocks, reaching a record high. The latest Chinese growth figures provided further encouragement and an air of optimism persists.
There have been real concerns about the unfolding picture in what is the world’s largest economy, and a slowdown in GDP last year, posted the weakest rate of growth for many years. The announcement that GDP in China rose to 6.1% was welcome news. Whilst meeting analysts’ expectations, there was no disappointment. The phase one trade agreement between the US and China should see investment in manufacturing improve. There are still however, many challenges but the news is encouraging.
This coincides with US data pointing to strong consumer demand, whilst interest rates remain low.
In the UK, whilst there are still risks, there is no doubt that the perceived risk, market wise, is significantly lower than in November of last year. Sentiment has changed and it would appear, that more foreign investment is being attracted to our shores.
It is, of course, really difficult to predict what’s going to happen out there in the big wide world and so what ourselves and our investment partners look at, is the possible impact of varying scenarios, with the view of protecting investments on the downside and optimising returns wherever possible.
Enjoy the ride!
Have a good weekend.
The Blue Sky Investment Team