Gerald Fitzgerald’s Market Review February 22nd
22 February 2021
LAST WEEK IN 30 SECONDS...
Regional equity markets saw contrasting fortunes last week as government bond yields rose on the back of inflation expectations rising. Global equities finished the week 0.4% lower.
Global oil rallied last week moving above $60 a barrel as adverse weather conditions in Texas impacted the energy sector pushing the commodity price higher. Meanwhile, the threat of rising real yields saw gold sell-off by 2.3% last week, with Bitcoin continuing to steal the limelight from the metal as the cryptocurrency valuation breached $56,000 per coin.
THIS WEEK IN 30 SECONDS...
With ongoing expectations for rising inflation, markets will look closely at Friday’s update on US personal consumption expenditure as a gauge of the actual magnitude of increase compared to investor perception.
Elsewhere other economic disclosures include Eurozone inflation updates along with US consumer confidence updates on Tuesday, whilst Thursday sees US GDP updates. There are over 2,000 company updates this week including Berkshire Hathaway on Monday, Home Depot on Tuesday and Airbnb on Thursday.
MARKET RECOVERIES: A TALE OF TWO REGIONS
US treasury yields have risen steadily on the back of an improving economic outlook and deployment of numerous vaccines to counteract the spread of Covid-19. Last week saw the yield on 10-Year US treasuries hit their highest since February 2020.