19th March 2020

Prudential: Taking stock of the Coronavirus correction

The end of February saw one of the most rapid market corrections in history as investors confronted the building evidence that the outbreak of the 2019 strain of coronavirus, dubbed Covid-19, had not been contained within China and could become a more global pandemic.

The speed of the sell-off was surprising, however, it comes on the back of a period of very strong equity market performance which had priced a reacceleration in activity from 2019 levels. The contagion of the coronavirus internationally now poses a significant threat to the 2020 growth outlook.

China has borne the brunt of economic impact so far. In trying to contain the outbreak large parts of the economy have been shut down. This has likely resulted in a lost quarter for Chinese economic activity. Recent PMI readings seem to confirm this. Efforts by officials in newly affected countries will likely add further disruption to the global economy as we move from containment to mitigation.

Read the full article here.

Further information

T&IO Market Update – March 2020 Investment Summary 

Having been hit by the double whammy of reduced demand due to the virus, travel/production restrictions and the spat between Russia and Saudi Arabia; where Russia refused to yield to the kingdoms’ request to cut output, even the speed of last weeks’ moves were jaw dropping by any standard.

Read the full update here.

Monthly Investment Update webinar – 25 March at 2pm

On this webinar Paul Fidell, Business Development Manager will look at recent performance of the PruFund range of funds available on Prudential’s Retirement Account. Mark Riggall, Head of Client Portfolio Management at M&G Treasury & Investment Office will provide a market update. 

Register for the webinar here.

Investments, Investment Commentary