Weekly Market Summary.

Given the level of uncertainty surrounding the coronavirus, equity markets have recently tended to sell-off towards the end of the week.

Global equity markets closed lower today (Friday 3 April 2020), resulting in weekly declines: the FTSE-100 ended the week down 1.72%, while in the US the S&P 500 finished the week 2.08% lower.

Global equity markets rallied strongly this week on optimism that America’s $2tr fiscal stimulus will mitigate the economic impact of the coronavirus outbreak. For example, in the US, the Dow Jones rose nearly 13%, while the broader S&P 500 index ended the week just over 10% higher after recording its strongest three-day advance since the 1930s

This week global equity markets extended the previous week’s losses amid heightened coronavirus uncertainty.

With the global equity market volatility we have seen over the past three weeks, it isn’t surprising if you, like many of our clients, are worried – and I would like to reassure you that your portfolios are diversified across a variety of asset classes.

It has been a wild week for global equity markets. Equities initially rose sharply – the S&P 500 index, for example, rose 4.60% on Monday (2 March 2020) and 4.22% on Wednesday (4 March 2020).

As the coronavirus spread beyond Asia, the sell-off in equity markets did as well, with the FTSE-100 falling just over 11% during the week, while in the US, the Dow Jones fell over 12.36% and the S&P 500 nearly 11.5% – the most since 2008.

Apple this week warned that production and Chinese demand will miss its targets due to the coronavirus outbreak.

Most of the major equity markets extended last week’s rally, on hopes that the coronavirus outbreak is losing momentum.