The Week Ahead: Tesco, dividend drought and a Good Friday

TL;DR

Q1 market numbers show significant declines, with hopes for positive news in the coming week's economic factors.

Transcript

hello I'm Richard hunter hello marketers relative investor and welcome to our look ahead for the week commencing the 6th of April it will come as no surprise that now we've left the end of the first quarter the figures are making for fairly ugly reading if we look at the main four indexes that we normally cover at the end of that first quarter the ... Read More

Key Insights

• 🫰 Q1 market performance shows significant declines across major indexes, reflecting the impact of the coronavirus pandemic.
• 🛢️ The oil price has experienced a bounce but remains significantly down, affecting the energy sector.
• 🧑‍🏭 Investors are awaiting positive news and economic factors to underpin the market.
• 🌐 Initial jobless claims in the US have multiplied, suggesting a global recession.
• 💁 Tesco's upcoming report will offer valuable information on the supermarket's performance during the outbreak.
• 💇 The dividend universe is shrinking, with many companies announcing cuts or freezes on dividends.
• ❎ The overall market outlook remains uncertain, with potential for both positive and negative developments.

Questions & Answers

Q: How have major market indexes performed at the end of Q1?

The Dow Jones was down 23%, the S&P was down 20%, the NASDAQ was down 14%, and the FTSE 100 was down 25%.

Q: What has been the impact of fiscal and monetary stimulus efforts?

While there has been a bounce in the oil price, it remains down 52% in the year-to-date. The market may be slightly underpinned if there are positive developments in the coming days.

Q: How have initial jobless claims in the US been affected?

Initial jobless claims in the US rose from 282,000 to 3.3 million in one week, doubling to 6.6 million. This indicates a global recession and the need for positive news.

Q: Are there any notable company reports to watch out for in the UK?

Tesco is scheduled to report its full-year numbers on April 8th, which will provide insight into how supermarkets have been faring during the coronavirus outbreak.

Summary & Key Takeaways

• The main four indexes (Dow Jones, S&P, NASDAQ, FTSE 100) experienced declines at the end of Q1, with the Dow Jones down by 23% and the S&P down by 20%.

• Despite fiscal and monetary stimulus efforts, the oil price remains down by 52% in the year-to-date.

• The upcoming week will have a four-day trading week due to Good Friday, and economic factors from the eurozone, UK, and US will be closely monitored.