Weekly Market Insight

Latest Economic & Market Update 12th March 2021

12th March 2021

Good afternoon, it is March 12th 2021 and here is your economic and market update from BlackBee. 

Today’s focus:

  • European Central Bank to increase pace of bond purchases.
  • Aedifica press release on acquisition of four nursing homes.

In response to the eurozone’s rising borrowing costs and faltering economic recovery from the pandemic, the ECB have pledged to accelerate the pace of its bond buying over the next three months. On Thursday in its latest monetary policy decision, main policies remained unchanged while it was announced bond purchases under the €1.85tn pandemic emergency purchase programme would be “conducted at a significantly higher pace” next quarter. As a result of the announcements, eurozone bonds rallied as investors were reassured that the ECB will intervene to limit rises in the cost of finance for governments, businesses and households. The yield on the Italian 10 year bond fell from 0.56% to 0.49%. The level of government debt has significantly increased due to the pandemic however the cost of debt rather than the level of debt is considered the main risk. (Source: FT).

Aedifica have released a press release regarding their acquisition of a portfolio of 4 care homes in Ireland. The total investment is approximately €26.5mn. Total capacity is 233 residents with a net rental yield of approximately 5.5%. The operator of the homes is Virtue. The four care homes are located in the south east of Ireland (Kilkenny, Wexford x2 & Carlow). Aedifica will acquire 100% of the shares of the two real estate companies that own the four sites. The agreement for the aqcuistion of the care homes was signed on 11 March 2021 and is subject to certain conditions which should be fulfilled in the coming weeks. (Source: Aedifica)

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

Global Market Update
(as at close of markets 10/03/2021)