Good afternoon, it is January 8th 2021 and here is your economic and market update from BlackBee.
- Lisney 2020 property market report.
- Donald Trump changes tone on demonstrators.
According to figures released today by property company Lisney, the Irish property investment market recorded a turnover of €3 billion last year despite the pandemic. The report highlighted that supply was more limited from April onwards as many potential sales were put on hold. The 2020 figure was half of 2019’s turnover figure. Office space was the most active sector as it accounted for 39% of the total turnover. Starting 2020 the office market was expected to have a strong year and did deliver early on as 90,000 square metres transacted in the first quarter however only about 52,000 square metres of transactions were completed in the three remaining quarters of the year. Lisney also stated that it is likely that some staff in specific sectors will work remotely for one or two days a week providing flexibility to workers. On the surface, this may imply that less office space would be required however they noted that people have been accustomed to greater personal space in the last nine months and office sizes may grow to allow for this. Lisney anticipated the continued demand in 2021 with big tech companies continuing to power market demand.
In the residential market, Lisney noted that sales stalled from the middle of March as potential purchasers could not physically view the properties. In the short term, Lisney identified that supply will remain a key issue with prices holding firm due to the pent up demand. (Source: Lisney, RTE)
Changing his tone on Thursday evening, Donald Trump has condemned the actions of the violent demonstrators accusing them of “defiling the seat of American democracy” and also stated that those who broke the law “will pay”. This follows a push from Democrats to forcibly remove him from office following his earlier comments where he referred to the rioters as “very special”. Mr Trump also conceded that the certification of the election results has been completed by Congress and that “a new administration will be inaugurated on January 20”. Despite the demonstrations, markets in the US continued to climb with the S&P500 climbing 2.78% from close on Monday and the Dow Jones up 2.7% in the same period. Markets continued to rise as investors considered the short term economic outlook unaffected by the demonstrators as the Democrats won control of the Senate suggesting that the higher economic fiscal package including direct payments to Americans will be pushed through. (Source: FT).
Best & Worst Performers of Large Cap US Stocks on Thursday
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Global Market Update
(as at close of markets 07/01/2021)