Weekly Market Insight

Latest Economic & Market Update 18th November 2020

18th November 2020

Good afternoon, it is November 18th 2020 and here is your economic and market update from BlackBee. 

Today’s focus:

  • Investor concern for slowing economic recovery in the US.
  • CSO release national residential property index figures for September.

A combination of disappointing US retail sales data and concern over the increasing number of coronavirus cases saw markets edge lower on Tuesday. The S&P500 declined 0.48% and the Nasdaq retreated 0.21%. Although Monday was a positive day for markets following Moderna’s announcement regarding the effectiveness of their vaccine, on Tuesday investors turned their focus again to the rising number of cases and hospitalizations in the US. The growth of US retail sales in October grew at a much slower pace than expected coming in at +0.3%. This is much lower than the 1.6% month on month growth in September which may indicate that tougher times may still be ahead for US businesses and slowing economic recovery. Concerns over the rising number of cases in Europe was also felt in European markets as the Stoxx Europe 600 declined 0.24%. Investor concern also showed in the US treasury market as the 10-year US treasury yield declined to 0.87% (yields decline when prices rise). (Source: Bloomberg)

In the 12 months leading to September 2020, national house prices fell by 0.8% with house prices in Dublin seeing a larger decline of -1.8%. However if Dublin is excluded from the national figure, house prices grew 0.1% in the last 12 months. On an annual basis house prices outside of Dublin have continued to grow for each month this year, albeit at a much slower rate compared to the start of the year. The rate of annual growth has slowed from 2.6% in January to 0.1% in September. National property prices have climbed 83.7% from their trough in 2013 while Dublin residential property prices have climbed 91.5% from their lows in February 2012. (Source: CSO) The supply and demand imbalance of houses in Ireland is an influencing factor in the resilience of residential property prices in Ireland.  

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

Global Market Update
(as at close of markets 17/11/2020)