Capital-Market Impact Articles for Advisors

Equity markets beginning to reflect coronavirus threat

February 24, 2020

Equity markets are beginning to catch up with bond and commodity markets in concern around the coronavirus outbreak, though a substantial divide remains. The outbreak is spreading beyond China (including Japan, South Korea and Italy), which raises the prospects for a drag on global growth. It is difficult to estimate the impact due to the uncertainty surrounding the scope and duration of the impact.

Capital market impact

Markets react to viral uncertainty

February 24, 2020

Any major news event involving China will likely cause ripple effects around the world, due to the significant role of the country in the broad global economy. Financial markets so far have been split in their response to the outbreak.

Capital market impact

Equity investors adopt “glass half full” mindset

February 19, 2020

Markets are showing remarkable resiliency given the uncertainties surrounding the coronavirus outbreak. The global economy has been showing signs of stabilization, but the unclear duration and magnitude of the disruption is a risk. Equity markets have chosen instead to focus on the supportive fundamentals. Earnings have reached an inflection, showing slight growth in the fourth quarter versus the expectation of a decline.

Capital market impact

Job growth defies market expectations

February 18, 2020

Non-farm payrolls in the U.S. grew again in January with 225,000 additions, extending the current record run of job expansion to 112 consecutive months. The U.S. employment market remains stronger than expected for such a lengthy expansion, especially with the short supply of available workers.

Capital market impact

Equity markets are resilient despite coronavirus spread

February 10, 2020

Equity markets saw a sharp rebound to record territory last week, as investor focus shifted from coronavirus fears to an improving macro landscape. The earnings inflection continues to develop, with the fourth quarter now trending to grow versus a year ago versus a decline of 2% expected at the beginning of the year. Looking ahead, analysts see earnings growth of 2.5% to 5% for Q1 2020 and Q2 2020.

Capital market impact

Economic confidence riding high as the election year begins

February 4, 2020

Economic sentiment is a closely-watched indicator in a presidential election year. A recent survey shows the view of the U.S. economy among likely voters is as positive as its been in 18 years. But a rise in partisanship could insert some uncertainty into the upcoming election.

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