Gold and Silver Updates


It’s notable that when once more the S&P 500 has managed to outperform, hitting new report highs, regardless of the financial shock of the pandemic, whereas the Nikkei has additionally seen an honest rebound.

The response of the US Federal Reserve has definitely helped on this regard, with numerous new monetary policy interventions which nearly stray into the realms of fiscal coverage. Varied lending programmes, together with the acquisition of so-called “fallen angels” company debt have nearly acted as a put in opposition to chapter of numerous massive US corporations.

Additionally it is fascinating to notice how completely different the tempo of the respective bouncebacks has been, and the way a lot more durable the FTSE 100 has been hit relative to its friends, although in case you dig deep sufficient beneath the floor it’s additionally simple to grasp why the FTSE has struggled.

So, whereas the FTSE 100 has clearly struggled this yr, it additionally stands to motive that it is also essentially the most inclined to a robust rebound, if the UK and international economies see a normalisation in 2021, with the prospect of a transfer again above the 7,000 stage a probable chance, and better in direction of 7,400.

The sectors hit the toughest by the pandemic: journey, leisure, normal retail, vitality and banks, all of which make up a big proportion of the FTSE 100, encapsulates fairly neatly why the FTSE 100 has been hit as arduous because it has, and that’s earlier than we even contemplate that the Brexit transition interval involves an finish on the finish of this yr. If we take a look at the likes of IAG, down over 60%, Rolls-Royce, BP, Royal Dutch Shell and Lloyds Banking Group over 40% decrease, and NatWest Group, greater than 30% weaker, the proof is evident to see.

The rebound within the German DAX has additionally been pretty spectacular, nonetheless there are issues as we stay up for 2021.


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