Market Outlook Report – January 2020

Market Overview

January 2020

Iran – US tensions high after Iranian commander killed

Arguably the most impactful global news at this current time, is the assassination of Iran’s top general; Qasem Soleimani. The subsequent effects of this have echoed throughout the global market, influencing commodity pricing both for the better and worse.  

Relevance/ Impact 

Outlook of Commodities given Current Macro Events

Given the global market outlook, commodities are currently a favourable investment. Certain commodities, such as gold, are always considered to be a ‘go to’ investment in times of uncertainty, market disruption, or when the USD depreciates. The start to 2020 encompassed all three of these factors, mostly as a result of the US/Iran conflict which kicked off 2020 in a way contrary to what was forecasted to be a prospective year.

Relevance/ Impact 

US / China Trade War

The ongoing back and forth between two of the world’s superpowers has dominated the world headlines and had constant impacts on the world economy. The impulsiveness of Trump hasn’t helped, leaving investors anxiously waiting to see what impact his next tweet will have on their investments.

Relevance/ Impact 

Positive 2020 Outlook for Emerging Markets

After an uninspiring performance in 2019, the market outlook for Emerging Markets moving into 2020 includes predictions of increased GDP growth and general improvement of investor sentiment. The new positive outlook on emerging markets is due to past under-performance, the prediction of the US Dollar weakening and further positive negotiating between China and the US.


Conservatives Win Majority in UK Election

Positive news for Johnson on 12th December as Conservative Party wins UK general election with a majority of 80 seats, the greatest majority win for a Conservative leader since Margaret Thatcher’s 1987 victory. This win paves the way for Boris Johnson to take the UK out of the EU on 31st January with a brand-new government. Markets and Sterling both reacted favourably with UK domestic stocks soaring throughout the following day.

Relevance/ Impact 

House Price Growth Over 1% For First Time in a Year

2019 has been a tough year for the UK housing market, with low house price growth and liquidity issues dominating the headlines. Brexit uncertainty has played a key role in the housing market and is likely to continue to do so throughout 2020.

Relevance/ Impact 

Sources: Information is included in this article has been obtained from a range of sources including seminars, webinars, industry publications and general media comments. This information was sourced from November 2019. 

Disclaimer: This document represents the opinion of Reeves Independent only and is not intended as advice and no investment decisions should be made solely on the back of this email. Always seek independent financial advice before taking any action. Past performance is not a guide to future performance. All investments carry the risk that you will get back less than you put in.