Weekly comment: Yin and Yang

Weekly podcast: Market overview

As markets continue to face supply chain problems across industries, Richard Mitchell, Investment Manager, is joined by Richard Carter, Head of Fixed Interest Research, and Jamie Maddock, Equity Research Analyst, to discuss the puzzling employment figures coming out of the US, whether China is single-handedly driving the price of copper and what the Scottish election’s impact will be on markets.

Market overview – Alan McIntosh, Chief Investment Strategist

Strong earnings results in Europe coinciding with promising Covid-19 news meant the region’s equities had a significantly positive week ending 1.7% higher. The FTSE 100 proved to perform even better climbing 2.3% despite a strengthening sterling against the US dollar. Other news from the UK saw the Scottish National Party (SNP) secure a fourth term at the recent election although fell short of overall majority. Nonetheless, SNP leader and First Minister of Scotland Nicola Sturgeon has said it’s a matter of when, not if, the country will hold another independence election.
Elsewhere, concerns of interest rate hikes in the US to keep up with the economic recovery were quickly eased following the latest employment figures which announced only 266,000 new jobs were created in April, heavily short of the one million figure expectation. This resulted in US equities having a strong end to the week finishing up 1.2% after much of the technology sector struggled in the early half of the week.
Asia continues to struggle with the Covid-19 outbreak as Japan extended its state of emergency for much of the country until the end of the month although its equity market still finished positive for the week, as did China.

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Written by

Alan McIntosh
Chief Investment Strategist
Richard Carter
Head of Fixed Interest Research

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