Weekly Market Insight

Latest Economic & Market Update 4th November 2020

04th November 2020

Good afternoon, it is November 4th 2020 and here is your economic and market update from BlackBee. 

Today’s focus:

  • Markets swing as Tuesday’s “Blue Wave” trade unravels
  • Critically low supply of affordable housing outside of Dublin – Simon Community

Markets on Tuesday leaned heavily towards a “blue wave” win. A Joe Biden and Democratic majority in both chambers of Congress was priced in with the expectation that a US fiscal package would be agreed following the election. The S&P 500 closed 1.78% higher and Euro Stoxx 50 ended the day up 2.62%. Markets have since fluctuated as the Presidential race has tightened. Equity futures trading on early morning Wednesday was pointing to a Trump victory. Nasdaq 100 Futures gains were almost double those of S&P 500 Futures. Investors at the time anticipated a Trump victory and subsequently no incoming Biden regulation on big tech. The 10 year US Treasury yield at midnight was 0.90%, it’s highest since March. Following Donald’s Trump victory in states including Florida and Ohio, the yield has since tightened (as of 09.20 Wednesday) to 0.79%. Futures trading has now switched with S&P 500 futures are now up c.0.60% vs Nasdaq +0.082%. More market reaction tomorrow (Data source: Bloomberg)

Simon Community’s Locked Out of the Market November report highlighted a “chronic lack of supply” of affordable housing outside of Dublin. The Housing Assistance Payment (HAP) is the social housing support paid by local councils to property owners. 16 areas across the country were analysed over a three day period in September. The report’s findings show that 94% of properties that meet HAP criteria were in Dublin. This highlights a significant lack of affordable housing outside of the capital. Cork City Centre, Galway City Centre and Sligo Town were among the areas where no properties were available to rent within the HAP rates. Blackbee are aiming to assist local authorities meet social housing supply needs. A refit of already built homes will allow properties to be available for potential tenants at a much faster pace than the construction of new homes.

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

Global Market Update
(as at close of markets 3/11/2020)