Weekly Market Compass: The UK walks away from talks with the EU, but there is still hope that a trade deal can be salvaged
Last week was a critical one in the ongoing Brexit odyssey. As the UK hurtles towards the end of 2020 (which will mark its exit from the European Union), it has been negotiating with the EU on the terms of their future trading relationship.
The Technology sector has contributed 94% of the S&P 500’s YTD return and currently has a 28% weighting in the index. The remaining ten sectors, on average, have contributed less than 1%.
Read the Weekly Market Snapshot to stay up-to-date with stock markets and sectors, bond market returns and financial news for the week.
Weekly Fixed Income Commentary: Treasury yields fall due to rising coronavirus cases and stalled stimulus
U.S. Treasury yields declined across the yield curve last week, led by longer maturities. Markets are concerned about rising COVID-19 case counts in the U.S. and Europe, stalemated U.S. fiscal stimulus negotiations and the pausing of several coronavirus drug and vaccine trials.
Although the news trended in a negative direction last week, stocks held their ground and eked out modest gains, with the S&P 500 Index climbing 0.2%. Coronavirus cases have been rising in parts of the U.S. and throughout Europe, although mortality trends have been improving.
Dividend-paying equities are a cornerstone for many investors. Like many things, 2020 has proven difficult for this segment of the market as returns have been concentrated in other areas and dividend payments have come under pressure.
Many companies may need to turn to private credit to restructure post-Covid. We see potential for such investments to serve as growth assets and diversifiers when new sources of portfolio resilience are needed.
Investors pay attention to the stock market not just because they are investing in it, but because they consider the market one of – if not the most – accurate of all leading indicators. Said differently, the market, in its infinite wisdom, will lead the real economy and will tell us where the world is headed.
Lockdowns will trigger cost cutting and speed technological innovation, but brace for the political tremors.
Review the performance of global stock and bond markets over the past week, along with relevant insights from T. Rowe Price economists and investment professionals.
Market Week in Review: Second COVID-19 wave hits Europe. What are the potential economic implications?
Market Week in Review is a weekly market update on global investment news in a quick five-minute video format. It gives you easy access to some of our top investment strategists.