Weekly Market Insight

Latest Economic & Market Update 4th March 2021

04th March 2021

Good afternoon, it is March 4th 2021 and here is your economic and market update from BlackBee. 

Today’s focus:

  • ECB Policymaker: Inflation below targets, important to avoid pre mature rate rises
  • Global asset manager enter Irish Private Rented Sector (PRS) market

The recent rise in bond market yields have not reflected the rise inflation, according to ECB policymaker Pablo Hernandez de Cos. The increase in rates would have a negative impact on economic growth and therefore inflation. Mr. de Cos stated that the Eurozone is behind its inflation targets (currently 0.9%, target ‘just below’ 2%). One would imagine that inflation needs to surpass the ECB’s target before the central bank will allow rates to rise. With European economies mostly still in lockdown, a rise in interest rates hamper any recovery prospects. The ECB may intervene if the road to recovery becomes more difficult with rising bond yields. “The need to maintain very accommodative financing conditions is justified because we are a long way from achieving our inflation aim,” Mr de Cos added. (Source: Reuters)

Aberdeen Standard Investments (ASI) has paid €20 million for 39 apartments in Dublin city centre. The investment is the first by the global asset manager into Ireland’s private rented sector. The apartments at 19-20 Blackhall Street in Smithfield are being let to the Dublin City Council on a 25 year inflation-linked leased. The price paid for each apartment averages at €512,820. Last week Savills Ireland reported that PRS was the most invested subsector in Irish property in 2020. (Source: Irish Times)

Best & Worst Performers of Large Cap US Stocks on Wednesday
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Global Market Update
(as at close of markets 03/03/2021)

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