Posts Tagged ‘global equity markets’

Week in Review: U.S. Tech Pullback

The technology-heavy Nasdaq 100 Index is off nearly 11% from its recent high, the index closed under its 50-day moving average for the first time in 105 days as technology stocks experienced their worst pullback since March. Facebook and Amazon each lost more than 5% over the week while Apple and Netflix slid 7.4% and…

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Week in Review: Technology Stocks Take a Breather

After an exceptionally strong August month that saw major stock market indices including the S&P 500 and Nasdaq achieve new highs, some volatility returned to markets this week, largely driven by some profit taking in technology companies. As discussed in last week’s newsletter,  much of the performance in U.S. stock markets year-to-date has been driven…

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Week in Review: The K-Shaped Recovery

Economists are pointing towards a K-shaped recovery as opposed to the initial hoped for V-shaped recovery (a sharp bounce back) or a feared W-shaped recovery (a short recovery followed by another downturn). In this scenario there is an uneven economic recovery increasing the divide between the haves and the have-nots, with the winners being the…

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Week in Review: Biden vs. Trump

Despite a quieter week for global markets, the S&P 500 edged passed its February pre-pandemic record high this week. This marks a milestone as being the fastest bear-market plunge (a market move of twenty percent or greater) followed by the second-fastest bear-market recovery in U.S. history. We also saw Apple become the first company ever…

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Week in Review: SA moves to Level 2 Lockdown

As infections in the most populous provinces continued to decline over the week (just below 5,000 a day), as expected President Cyril Ramaphosa removed most of the Covid-19 lockdown restrictions on Saturday night. Level 2 takes effect from midnight tomorrow, when restrictions on alcohol, cigarettes, interprovincial travel and personal and family visits will largely fall…

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Week in Review: Minister Mboweni Delivers a Grim Assessment of SA’s Finances

On Wednesday, South African Finance Minister Tito Mboweni delivered a grim assessment of the nation’s finances in a special Supplementary Budget Review (SBR) that forecasts a deep South African recession and plunging tax revenues as a result of the Covid-19 outbreak and subsequent lockdown measures. Gross domestic product (GDP) is forecast to shrink by 7.2%…

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Week in Review: Central Banks Take Coordinated Action

Financial markets endured another week of extreme volatility as the number of coronavirus cases globally continues to rise. The social-economic trade-off of social distancing adopted by most countries across the globe will significantly impact global economic growth and employment in the first half of this year. To counteract this, major central banks and governments around…

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Week in Review: Virus Emergency

Global equity markets finished sharply lower over the week after the World Health Organization declared the coronavirus (“COVID-19”) a global pandemic. The declines pushed the major indexes well into bear market territory with the onset being the fastest in history and the Dow suffering its worst daily decline since 1987. The Cboe Volatility Index (VIX)…

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Week in Review: Central Banks Respond to the Coronavirus Outbreak

Major stock market indexes ended the week mixed as extraordinary volatility driven by COVID-19 fears continues. Possible policy responses from the U.S. and other governments to the COVID-19 outbreak took centre stage this week. G-7 finance ministers and central-bank governors met on Tuesday, pledging to use “all appropriate policy tools” to safeguard the global economy…

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