Weekly Market Insight

Latest Economic & Market Update 8th February 2021

08th February 2021

Good afternoon, it is February 8th 2021 and here is your economic and market update from BlackBee. 

Today’s focus:

  • The role of supply evident in Daft.ie rental report.
  • The Biden Administration keep pressure on Congress to pass fiscal stimulus package.

The role of supply on prices in the property markets is evident in Daft.ie latest rental report. In 2020, monthly rents in the capital fell by 3% while rents climbed 5% outside of the capital. The national average rent per month stood at €1,414 in Q4 2020, up 0.9% from the same period in 2019 marking the lowest rate of annual inflation since 2012. Despite this the average national rent now stands at double the low point in 2011 when national average rent was €742. The changes in rental prices reflect the availability of homes to rent. Supply of homes available to rent in Dublin has increased by almost two thirds since February 1st 2020. On the 1st February 2020 1,600 homes were available to rent but on the same date this year there were 2,600 homes available to rent. As a result, rents fell in Dublin by 3.3% to reach an average of €1,984 per month. Outside of Dublin, the number of homes to rent fell sharply from 2,000 on 1st February 2020 to 1,139 on 1st February 2021. As a result of the lower supply, rents rose 5.4% to €1,048 per month. Despite the sharp increase in homes to rent in Dublin, rents still stand at twice the level they were a decade ago highlighting the need of construction of new homes. (Source: RTE & Daft.ie).

Over the weekend Janet Yellen, the US secretary, urged lawmakers to pass the $1.9tn fiscal stimulus package. There have been claims that the Biden Administration Fiscal package could fuel inflation however Yellen argued that the biggest economic risk was not doing enough to help small businesses and the unemployed. The S&P500 climbed 0.4% on Friday taking total gains last week to 4.5%. The  continuous pressure on Congress from the Biden Administration regarding the stimulus package appears to be warmly received in equity markets as the equity rally looks set to continue with S&P500 futures pointing higher Monday morning. The 30 year treasury yield briefly climbed above 2% on Monday morning as investors expect Biden’s stimulus plan to boost US economic growth which will lead to higher levels of inflation (Source: FT).

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

Global Market Update
(as at close of markets 05/02/2021)

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