Weekly Market Insight

Latest Economic & Market Update 26th February 2021

26th February 2021

Good afternoon, it is February 26th 2021 and here is your economic and market update from BlackBee. 

Today’s focus:

  • CBI: Household deposits reach new high.
  • ECB indicate concern at rising eurozone sovereign debt yields.

According to new figures released by the Central Bank of Ireland, the trend of increasing household deposits has continued reaching yet another historic high. Household deposits increased by €1.9bn in January to reach €126.4bn. Consumer lending saw a sharp decrease last month. Repayments exceeded new drawdowns by €205mn in net terms, a continuation of the trend seen in 2020. This trend is amplified by the level of restrictions in place. In January, the downward trend in the growth rate continued in loans for house purchases. During the month loans for house purchases fell by €111mn in net terms. The growth rate stood at 0.8% in annual terms for January, down from 1.9% in the same period in 2020. (Source: Irish Times, CBI)

Following the recent sell-off in eurozone sovereign debt markets, the European Central Bank has indicated it will increase the pace of its emergency bond purchases if borrowing costs continue to rise for governments, companies and households. The ECB pledged to ensure financial conditions that would encourage investment and spending to help the eurozone economy make a swift recovery. The pandemic emergency purchasing programme would be relied upon to achieve this. Eurozone government bonds fell to their lowest levels for almost six months. Germany’s 10 year yield rose to its highest level since March, Frances equivalent returned to a positive yield for the first time since June and Italy’s yield hit the highest level since September. (Source: FT).

Best & Worst Performers of Large Cap US Stocks on Thursday
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Global Market Update
(as at close of markets 25/02/2021)