Weekly Market Recap
Week in review
- WTI oil price falls to -$37 as supply outpaces demand
- RBA downgrades economics outlook, -6% growth in 2020
- Australian retail sales surge nearly 9%y/y from hording effects.
- Australia CPI inflation
- U.S. real GDP for 1Q20
- U.S. Federal Reserve meeting
Thought of the week
R.E.M sang “it’s the end of world as we know it, and I feel fine.” Markets seem to feel the same way. The Eurozone PMIs released last week plunged to record lows. The composite index which includes both manufacturing and services was just 13.5pts in April. During the GFC the lowest the index got was 36.2. Unsurprisingly, the services sector accounts for much of the weakness. Despite the fact that services make up 75% of the Eurozone economy markets shrugged off the numbers, preferring to pin their hopes on a regionwide economic recovery fund to pull the single currency bloc out of recession. Given the pace with which European leaders move that may take a while. But it also may be the case that the April figures mark a low for many of these indicators.
Eurozone PMI a gauge of what’s to come
Eurozone composite PMI
JPMorgan Global Research Enhanced Index Equity Fund
To achieve a long-term return in excess of the benchmark by investing primarily in a portfolio of companies, globally; the risk characteristics of the portfolio of securities held by the Sub-Fund will resemble the risk characteristics of the portfolio of securities held in the benchmark.