Weekly Market Insight

Latest Economic & Market Update 5th January 2021

05th January 2021

Good afternoon, it is January 5th 2021 and here is your economic and market update from BlackBee

Today’s focus:

  • 6.3% rise in house prices in 2020 – myhome.ie Q4 2020 Property Report
  • US equities suffer worst day since October

House asking prices rose by 6.3% in Q4 2020 when compared with the same quarter in 2019 according to the latest myhome.ie property report. The average asking price nationally was €284,000 while the average asking price was €392,000 for a house in Dublin. Outside of Dublin, the average price was €238,000. The rise in prices was contributed by factors including “more acute” housing supply issues, working-from-home prospective home buyers being largely unaffected by Covid-19 related job losses and government supports protecting incomes. Angela Keegan, managed director of MyHome.ie said “The property market mirrors the overall economy, and we are in a much better place now than we may have expected to be early in 2020 when the virus emerged. Government Covid-19 supports, increased mortgage lending and the concentration of job losses among mostly lower-paid workers have ensured the property market has remained buoyant, while the ongoing issue of supply has exacerbated demand leading to a rise in house price inflation.” (Source: Irish Times)

The S&P 500 retreated yesterday by 1.5%, its largest one day loss since October with 80% of companies in the index seeing their share price fall. The tech-heavy Nasdaq Composite also lost 1.5%. Two factors led the selling; the marked increase in COVID 19 cases as a third wave of the pandemic unfolds in the US, but also the possibility of a Democratic win on Tuesday for the two Georgia Senate seats. Should the Democrats win, President Elect Joe Biden could have more power to push through increases in regulation and corporate taxes, both of which would be seen as negatives by US investors. European equity indices rose on Monday with the Eurostoxx 600 ending the day 0.7% higher. The UK’s FTSE 100 closed 1.7%, helped by sterling’s 0.9% drop versus the US dollar. Many of the international based companies on the FTSE 100 see positive currency translation impacts when converting dollar denominated profits into sterling. (Source: FT)

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

Global Market Update
(as at close of markets 04/01/2021)