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Caspar Rock: Monday markets - the week ahead on 6 January

Markets have been shaken by events in the Middle East: is this a passing storm, or something more serious?

06/01/2020
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Authors

Caspar Rock
Chief Investment Officer
  • Welcome to 2020. A number of positive economic indicators, combined with the continued provision of liquidity from central banks, might allow for low positive returns from equities this year. On the downside we expect low or zero earnings growth – and volatility caused by geopolitical events.
  • This links to the US drone strike last Friday in the Middle East, which caused a spike in the oil price, shook equity markets and sparked a rally in defensive assets. We are watching closely to see if this is a passing squall – similar to last year's missile strike on the Saudi oil facilities – or something more serious.
  • This week on Friday we have the important December US employment data, which is expected to continue the strong numbers seen in November.

Issued in the Channel Islands by Cazenove Capital which is part of the Schroders Group and is a trading name of Schroders (C.I.) Limited, licensed and regulated by the Guernsey Financial Services Commission for banking and investment business; and regulated by the Jersey Financial Services Commission. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

 

Authors

Caspar Rock
Chief Investment Officer

Topics

Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at IFC1, Esplanade, St Helier, Jersey, JE2 3BX, (No.31076).

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