Weekly Market Insight

Latest Economic & Market Update 14th January 2021

14th January 2021

Good afternoon, it is January 14th 2021 and here is your economic and market update from BlackBee. 

Today’s focus:

  • US firm purchases 63 Dublin residential units
  • Contraction in Q4 2020 Dublin business activity

The Dublin residential property market continues to attract overseas investment as revealed by The Irish Times yesterday. Two pre-1963 three-storey, over basement mid-terrace properties at numbers 2 and 3 Harrington Street sold for €2.927 million, an 8% premium to the initial guide price. The overall rental income of €198,960 equates to a 6.5% yield after standard purchaser’s costs. (Source: The Irish Times)

The 8% premium paid for the Harrington Street properties shows long term investor confidence in the Dublin residential market. This is despite a Q4 2020 contraction in Dublin business activity. According to IHS Markit, under the request of Dublin City Council, Q4’s overall index for manufacturing and services contracted to 49.2 from Q3’s 51.2. The Overall PMI is based on the output/business activity question from each survey. An index reading above 50 indicates an overall expansion in activity, below 50 an overall contraction. The relaxation of restrictions in December softened the quarter’s overall decrease. Commenting on the PMI, Andrew Harker, Economics Director at IHS Markit said: “With COVID-19 cases rising sharply again in January, the first quarter looks set to be another extremely challenging time for local firms.” (Source: Dublin City Council)

Best & Worst Performers of Large Cap US Stocks on Wednesday
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Global Market Update
(as at close of markets 13/01/2021)