Gerald Fitzgerald’s Market Review 1st February
01 February 2021
LAST WEEK IN 30 SECONDS...
Markets finished the week in the red as concerns grew on pockets of exuberance across a small selection of heavily traded stocks. Despite encouraging corporate earnings announcements, confidence was shaken by the market volatility leading to a wider sell-off for the week.
Global equities finished the week 3.3% lower in euro terms. Elsewhere, Italian government bond yields fell by 0.06% last week to finish at 0.65% as Giuseppe Conte sought to press ahead with plans to form a new government.
THIS WEEK IN 30 SECONDS...
Investors will closely monitor evolving market conditions as the media scrutiny on hedge funds’ influence on markets continues. Meanwhile, earnings announcements continue this week with Amazon, Google and Pfizer lead over 3,500 company quarterly updates.
From an economic point of view, it’s a busy week for Eurozone data releases with GDP updates on Tuesday, inflation announcements on Wednesday followed by retail sales on Thursday. US manufacturing PMIs are released on Monday, whilst jobless claims data are announced on Thursday.
GAMESTOP PUTS MICROSCOPE ON MARKET MAKERS
The recent fluctuations in Gamestop have called into question fundamental market mechanics. Most notably, it has raised questions over the use of leverage in markets and impact of short selling stocks. The daily price swings last week indicate amplified market conditions.