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Market Update 30 March: Equity rally ends as oil price plummets

  • European markets have started this week down about 1%.
  • The oil price continues to drop, now for the fifth straight week; it fell more than 6% over the weekend and dropped a further 2% this morning. Many analysts expect the price to continue to fall based on the low probability of an agreement between Saudi Arabia and Russia on production cuts. The former is now flooding the market which has already seen a sharp fall in demand due to the coronavirus. The relationship between the leaders of the two countries, Mohammad bin Salman and Vladimir Putin, remains poor.
  • The chart below shows Q2 US GDP estimates from the largest banks with wide-ranging forecasts and a median estimate of -12%.


SKAGEN Funds Summary

  • With the markets relatively calmer, the portfolio managers are currently focusing on company reporting and calls with management.



Historical returns are no guarantee for future returns. Future returns will depend, inter alia, on market developments, the fund manager's skill, the fund's risk profile and management fees. The return may become negative as a result of negative price developments.