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Gerald Fitzgerald’s Market Review February 15th

15 February 2021

 

 

LAST WEEK IN 30 SECONDS...

In a week which saw record inflows into equity markets, unsurprisingly global equity markets moved higher. The tech heavy NASDAQ was up 1.7% for the week, with global equities in euro terms up 0.8%. Global equities are now up 6.0% for the year-to-date. As the Chinese Year of the Ox began on Friday, emerging market equities continued their recent surge and are now up 11.9% for the year thus far.

In the shadows of an Italian government being formed and led by Mario Draghi, 10-year Italian Government bonds continued to trend lower finishing the week at 0.49%.

 

THIS WEEK IN 30 SECONDS...

Investors continue to assess the roaming bubbles proliferating markets in recent weeks where fundamentals contribute little to the irrational momentum story amongst certain stocks and commodities. GameStop’s share price drop has done little to dissuade investors from joining the social media herd.

Earnings results season continues this week including Nestlé, Shopify and John Deere providing market updates. From an economic point of view, the week sees Eurozone GDP updates on Tuesday, US retail sales updates on Wednesday and Eurozone Markit PMIs updates on Friday. Meanwhile, markets are closed in the US on Monday for Presidents’ day.

 

BITCOIN’S SURGE LEAVES PRECIOUS METALS SOFT

Bitcoin’s appreciation has shown little sign of slowing in recent days. The announcement that Tesla has purchased $1.5bn of the cryptocurrency has pushed the return for the year-to-date to 65.4%. Gold and silver in comparison have seen contrasting fortunes with significantly narrower trading ranges for the year-to-date.

Ger Fitzgerald

By Gerald Fitzgerald,