Weekly Market Insight

Latest Economic & Market Update 27th January 2021

27th January 2021

Good afternoon, it is January 27th 2021 and here is your economic and market update from BlackBee.

  • CBRE: Expected increase in demand for social housing investments in 2021.
  • President Biden willing to make concessions to push through economic stimulus package.

According to a report from CBRE, transactional activity in the Irish Residential investment market for 2020 was down 27% from 2019 levels. Q4 2020 saw €544 million worth of transactions taking the overall 2020 transaction value to €1.75 billion. The residential sector accounted for 48% of total commercial real estate investment in 2020, the first year where the residential sector has accounted for the majority of investment in the commercial real estate market. In 2019, the residential sector made up 33% of total investment in the commercial real estate market. Dublin accounted for 97% of total residential transactions. The total number of residential units owned by institutional investors now stands at 15,550. Demand for “living products” across Europe is strong  and Ireland is seen as attractive considering the strong long term economic and demographic conditions. CBRE expect to see continued strong demand from investors in 2021 and an increase in annual income investors seeking opportunities in social housing in 2021. (Source: CBRE)

For the first time President Joe Biden has indicated that he is willing to make concessions on his $1.9tn economic relief package. He said that he is open to lowering the income threshold for another round of stimulus cheques. The economic stimulus package is the new administrations top legislative priority. A way of reducing the cost of the bill is to make $1,400 payments to individuals accessible to fewer higher-income Americans. Mr Biden said he is also open to negotiate details such as where to draw the line for higher earners not to receive the payment. Talks with lawmakers have been ramped up in recent days as the Democrats push for an agreement before the 9th February where opening arguments in the Senate’s impeachment trial against Donald Trump will begin. (Source: FT)

Best & Worst Performers of Large Cap US Stocks on Tuesday
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Global Market Update
(as at close of markets 26/01/2021)