US
Both the S&P 500 and Nasdaq continued to lead equity market performance, a result of strong company earnings as well as an expected corporate friendly environment from the incoming Trump administration next year. The US has been remarkably resilient this year, with the S&P exceeding the majority of Wall Street year end targets by over 20% on average.
UK
The large cap FTSE 100 index also delivered positive returns this week, with company earnings overcoming some disappointing economic data. Accounting software firm Sage delivered strong results and a £400m share buyback, while oil majors BP and Shell also rose on the back of higher oil prices.
Bonds
Both UK and US 10-year yields were relatively flat, ending the week marginally lower, as investors weighed up geopolitical concerns alongside the trajectory for inflation and rate cuts in the coming months.
Oil
Oil rose above $74 a barrel due to escalation in the conflict between Russia and Ukraine, which may affect supply. There is also speculation that OPEC may restrict output at their next meeting given lower demand.
Gold
Similarly due to concerns over geopolitical tensions, gold performed well following a sell off last week. The stalemate at the G20 conference did nothing to improve sentiment, as the world seems to become ever more fragmented.
This article is for information only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity. Kuldev Sehra Wealth Management accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.
