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Gerald Fitzgerald’s Market Review March 22nd

22 March 2021

 

 

LAST WEEK IN 30 SECONDS...

Equity markets struggled for direction last week as the US Federal Reserve resolutely attempted to quell market fears of potential interest rate rises from rising inflation expectations. The Fed’s assertion that interest rates would not rise until 2024 did little to reassure investor sentiment. Global equities finished the week marginally lower at -0.1%.

Meanwhile, oil prices took a sharp pause for breath last week as WTI Crude Oil which started the year at $48 and has steadily appreciated in the interim, fell by 8.5% over the week. Elsewhere the inflation story continues to impact key government bond yields with the 10-year US Treasury yield finishing the week 0.09% higher.

 

THIS WEEK IN 30 SECONDS...

The week ahead sees a divergent pattern evolving for developed economies as a rise in Covid-19 cases across Europe sees new restrictions on movement, whilst across the Atlantic the advanced vaccine roll-out has optimism rising on the economy’s full reopening.

From an economic update, Eurozone Markit Composite PMIs updates are released on Wednesday in addition to US Durable Goods orders whilst US GDP updates are released on Thursday.

The week ahead sees a raft of company announcements from Chinese firms including tech behemoth Tencent and financial firm Ping An Insurance.

 

CHINESE EQUITIES STUCK IN THE MUD

The year of the Ox saw Chinese equities starting on positive terms, however, subsequent warnings on market exuberance and excessive leverage have Chinese equities struggling to break new ground.

Ger Fitzgerald

By Gerald Fitzgerald,