Weekly Market Insight

Latest Economic & Market Update 9th February 2021

09th February 2021

Good afternoon, it is February 9th 2021 and here is your economic and market update from BlackBee. 

Today’s focus:

  • Equity record highs and oil rally
  • Thousands of aviation jobs at risk warns Fórsa

Investor optimism, when measured by US equity indices, reached record levels yesterday. The S&P 500 Index climbed 0.7%, closing at a record high 3,915.59. Similarly, the Nasdaq Composite closed at a unprecedented level: 13,987, 1% higher than the previous day. The equity purchasing is fuelled by the likelihood of President Biden’s $1.9 trillion US stimulus package being approved, global Covid-19 vaccination roll outs, low interest rates and retail investors trading while in lockdown. Equity net buying was also evident in European markets, Stoxx Europe 600 rose 0.3% and FTSE 100 rose 0.5%. Mario Draghi took a step closer to forming a government in Italy resulting in the FTSE MIB index climbing 1.5%. Brent crude oil passed the $60 a barrel level for the first time since January 2020 due to expected cuts in Saudi supply levels. Alongside the buying in equity and oil markets, bond yields climbed yesterday due to investors’ inflation concerns. The 30 year US Treasury traded above 2% for the first time since February 2020, when coronavirus first impacted Western capital markets. Bond yields rise when prices fall. (Source: FT)

Without government intervention, thousands of aviation jobs will be lost permanently in Ireland according to trade union Fórsa. Fórsa represent more than 5,000 workers in airlines, airports, air navigation and other air travel related roles, suggested industry-specific supports for workers. Assistance with wage supports, a break in mortgage payments and a roadmap to survival were called for by the union. In Fórsa’s submission to the Oireachtas transport committee, the union notes that The Director General of Eurocontrol has reported that Dublin airport was the most affected by the coronavirus crisis in Europe. In 2020, the traffic levels in Irish airports went down drastically, Dublin witnessed a traffic drop of 81%, while traffic in Cork fell by 75%.(Source: Irish Times, Fórsa.ie)

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

Global Market Update
(as at close of markets 08/02/2021)