In financial markets, in any
normal year we would now be turning our full attention to the second quarter
results season. This year we remain more than a little distracted by other
events, but the earnings are still going to be a very important pointer. They
might also serve to close the gap between strategists’ “top down” aggregate
market estimates for this year and still lagging analysts’ “bottom up”
forecasts.
The damage will probably be
somewhat greater for the FTSE 350 and All-Share indices owing to their greater
exposure to domestic companies with the UK economy having been hit harder than
many others.
In this commentary John
Wyn-Evans, Investec Wealth & Investment’s Head of Investment Strategy, reflects
on the last quarter results, the recent meaningful progress in development of
the new test vaccine and the US political situation.