Weekly Market Insight

Latest Economic & Market Update 10th December 2020

10th December 2020

Good afternoon, it is December 10th 2020 and here is your economic and market update from BlackBee. 

Today’s focus:

  • ECB expands monetary stimulus program and holds rates
  • One-third of workers concerned that long-term working from home will impact career progression

The European Central Bank expanded its monetary stimulus program today by a further €500 billion. The bond-buying was expected by markets as the ECB announced in October that it was ready to tackle increasing coronavirus numbers and “recalibrate its instruments”. After today’s bond-buying announcement, the total asset purchase value is now €1.85 trillion. Eurozone policymakers also kept interest rates unchanged, as expected. The three rates on main refinancing operations, marginal lending facility and deposit facility remain at 0.00%, 0.25% and -0.50% respectively. (Source: CNBC)

Matrix Recruitment’s latest workplace equality survey has found that one in three people surveyed believe that long term working from home will affect their career prospects. 1,414 adults answered the online survey in November 2020 and 38% of the respondents were currently working from home as a result of the pandemic. Of the respondents concerned about their careers, some of the reasons include being worried that employers will not be aware of all the work they do (61%) and concerns that employees will not have the right supports to progress their career (37%). Interestingly, 27% of respondents reported that those with outgoing or loud personalities were getting more opportunities, as they were more vocal on virtual calls and meetings. The near term future of the office is unclear, but in the long term, BlackBee believes that the office will continue to be a place for individuals and company culture to progress and develop. Commercial property prices are unlikely to crash as was the case at the end of the 2000s in Ireland. CBRE forecast prime office yields in Dublin remaining stable at 4%. This should continue to attract institutional investment, particularly in such a low yield macro environment.

Best & Worst Performers of Large Cap US Stocks on Wednesday
Click image to enlarge

Global Market Update
(as at close of markets 09/12/2020)