Weekly Market Insight

Latest Economic & Market Update 1st February 2021

01st February 2021

Good afternoon, it is February 1st 2021 and here is your economic and market update from BlackBee. 

Today’s focus:

  • Mortgage drawdown value reaches highest level in 12 years.
  • Central Bank of Ireland figures show spending increased during December.

According to figures from the Banking & Payments Federation Ireland, the value of mortgage drawdowns in Q4 2020 climbed 6.6% to reach its highest level in 12 years while the volume of mortgage drawdowns dropped nearly 1% in comparison to the same period during 2019. The BFPI said that the highest value of drawdowns since Q4 2008 was driven by borrowing from first time borrowers which reached its highest level of volume and value since Q3 2007. As a total, 2020 saw the lowest level of activity since 2017 as 35,617 mortgages with a value of €8.36 billion were drawn down. With a value of €2.95 billion, 12,154 of the mortgage drawdowns in 2020 were in Q4. In comparison to Q3, Q4 was up 49% on volume and 51% in drawdown value. First time buyers accounted for approximately 57% of mortgage drawdowns in terms of both value and volume. (Source: Irish Times, Banking & Payments Federation Ireland).

Figures released by the Central Bank of Ireland show that credit and debit card spending increased by 21% in December in comparison to November. The increase was driven by spending in the retail sector and in restaurants and dining. Spending in the retail sector and restaurants/dining climbed 66% from November to December. The increase in spending was a result of relaxed public health restrictions showing the possibility of a strong rebound when restrictions ease again. The reintroduction of public health restrictions and other factors such as seasonality and bank holidays saw spending sharply decline after Christmas eve, in the week to 25th January spending was 13% lower than the same period in 2019. (Source: Central Bank of Ireland).

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

Global Market Update
(as at close of markets 29/01/2021)