31 March 2020
CIO Daily Market Update with Will Bartleet
CIO and multi-asset portfolio manager at Pacific Asset Management
The final
day of an extraordinary quarter for markets saw equities and bonds mixed with European equities rallying and government bonds slipping whilst the US
saw equities sell-off and government bonds rallying.
30 March 2020
CIO Daily Market Update with Will Bartleet
CIO and multi-asset portfolio manager at Pacific Asset Management
News of
a slowdown in new cases in Italy provided some hope that social distancing can control the spread of COVID-19. Although in the US, President Trump
was forced to admit that life in America won’t get back to normal by Easter. More states in America issued orders instructing individuals to stay at
home.
30 March 2020
With the Pacific G10 Macro Rates Team
Global Macro Overview
Another week passed with more
and more parts of the world coming under lockdown. It remains to be seen how much damage is going to be done to the global economy, but we started
getting the first evidence of a slowdown from economic data released last week.
27 March 2020
CIO Daily Market Update with Will Bartleet
CIO and multi-asset portfolio manager at Pacific Asset Management
Sterling
continued to rally sharply and has now reversed the losses over the past two weeks. Boris Johnson, UK Prime Minister became the first major political
leader to be tested positive for COVID-19. The UK government provided advice to home buyers and renters that they should, “where possible, delay moving
to a new house while measures are in place to fight coronavirus” but that there is “no need to pull out of transactions”
26 March 2020
CIO Market Update with Will Bartleet
CIO and multi-asset portfolio manager at Pacific Asset Management
Equities rallied
for the third consecutive day as investors brushed off the news that a record 3.3 million Americans lost their job last week. Federal Reserve Chairman
Jerome Powell reassured the markets that the Fed will provide sufficient credit to the economy. “When it comes to this lending we’re not going to run
out of ammunition. That doesn’t happen.”
25 March 2020
CIO Market Update with Will Bartleet
CIO and multi-asset portfolio manager at Pacific Asset Management
The US Senate
agreed on a $2 trillion stimulus package which equates to some 9% of US GDP. The German parliament approved a EUR750 billion package to combat the
economic impact of the coronavirus. Finance minister Olaf Scholz said that its stimulus must be “timely, targeted and temporary to help the economy
start again”. India joined the growing number of countries in lockdown whilst Brazilian President Jair Bolsonaro urged the country to resume normal
life to protect the economy.
24 March 2020
CIO Market Update with Will Bartleet
CIO and multi-asset portfolio manager at Pacific Asset Management
Equity markets
soared on Tuesday in anticipation of the $2 trillion fiscal stimulus package being approved by the US senate. The Dow Jones Composite, America’s oldest
index, had the largest gain since 1933. The House Democrats made a counterproposal for a spending plan that amounts to $2.5 trillion.
24 March 2020
With the Pacific G10 Macro Rates Team
Global Macro Overview
Financial markets experienced
another turbulent week, as liquidity continued to be challenging even in the largest markets. Volatility remained elevated with the VIX staying above
70 most of the week, TYVIX (VIX for US Treasuries) at the highest levels since 2008 and various instruments (S&P futures, 30y US Treasury futures,
10y BTP futures) hitting their daily limits up and down on several occasions. While markets were evaluating damage to the economic activity, more and
more regions in the developed countries were put under lockdown.
23 March 2020
CIO Market Update with Will Bartleet
CIO and multi-asset portfolio manager at Pacific Asset Management
The week started
with the news that German Chancellor Merkel has been put into quarantine after contact with a doctor who had later tested positive for COVID-19. Overnight
in the US, the Senate failed to pass legislation for economic stimulus after senators disagreed on how to spend the $2 trillion package.
20 March 2020