Good afternoon, it is October 28th 2020 and here is your economic and market update from BlackBee.
- Irish Institutional Property warn of permanent housing crisis in Ireland.
- Investors weigh the impact of fresh lockdowns on business activity.
The Irish Institutional Property (IIP) has warned that unless there is a major rethink on how to deliver more affordable homes, the housing crisis will become a “permanent issue in Irish society”. Reported by the Irish Times, the IIP, an industry body which represents large property developers, warned that supply and demand are largely out of sync and that the mismatch is “intrinsically linked” to affordability. The IIP said that to meet demand, for each year in the next five years 47,000 homes will need to be built. The IIP also estimates that an additional 125,000 apartments are needed in Dublin to meet demand. These warnings and the significance to which supply and demand are out of sync support BlackBee’s strategies of both providing regional social housing and planning for apartment blocks in Dublin. The IIP said that “assuming the economy continues to grow and attract net immigration alongside the natural increase, it is estimated that the housing supply will need to grow by 55% or 940,000 units over the next 20 years”.
In Tuesday’s trading, tech stocks were once again the outperformers as both US and European stocks recorded a second day of loses. Investors continued to weigh on the implications of a surge of Covid-19 cases in the US and fresh lockdowns on business activity. The Nasdaq climbed over 0.6% as tech stocks helped erase some of the losses for the S&P500, however, the S&P500 closed 0.3% lower with nearly four stocks falling for every one that gained. Investors moved to stocks that benefit from lockdowns with Amazon and Apple gaining 2.5% and 1.3% respectively. The Stoxx Europe declined by nearly 1%. Following a recent fall in price which saw WTI fall below $40 a barrel, oil rose and the WTI climbed 2.62% to $39.57, with crude climbing 1.83% to $41.20. Bitcoin also rose above $13,000 to reach its highest level since January 2018. (Data source: Bloomberg).
Best & Worst Performers of Large Cap US Stocks on Tuesday
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Global Market Update
(as at close of markets 27/10/2020)