Weekly Market Insight

Latest Economic & Market Update 9th October 2020

09th October 2020

Good afternoon, it is October 9th 2020 and here is your economic and market update from BlackBee. 

Graph of the Week: Demand for Quality Assets – Investors Focus on Prime Office Assets as they Review Portfolios

Source: Knight Frank

Cushman & Wakefield have released research that shows direct investment sales transacted in the Irish commercial property market in Q3 reached a total of €251 million. Including forward commit transactions, this figure rises to €680 million in Q3, demonstrating strong investor demand. Total direct investment sales are €1.15bn for the first three quarters of 2020, although this is a decline on last year’s total, there has been a significant pickup in demand in Q3 from Q2 highlighting the strength of the market. The Cushman & Wakefield research also stated that there has been a flight to quality assets such as prime office assets as investors review their portfolios. Approximately 69% (€794.5m) of the €1.15bn of direct investment sales in the first three quarters of 2020 were accounted for by office assets. Dublin’s prime office yields stand at 4% and compare favourably to European counterparts. Residential assets account for 11% of turnover for in the first three quarters. The attractiveness of Irish Commercial Property is also highlighted in the Cushman & Wakefields figures regarding international investment. Of the total €1.15bn in turnover, 77% of funds are from foreign investors.

At a glance:

  • ECB policymakers warn that inflation will remain in negative territory for the rest of the year and that a rise in the euro would be a “risk to both growth and inflation”.
  • President Trump will not attend next week’s Presidential Debate due to the event being held virtually.   
  • Recovery in US job growth remains sluggish as 840,000 people filed for unemployment benefits for the first time, only down 9,000 from the week prior.

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

Global Market Update
(as at close of markets 08/10/2020)