- The UK stock-market was higher last week. Helping sentiment was a mid-week report from the OECD which stated Global GDP growth is now projected to be 5.6% this year, an upward revision of more than 1 percentage point.
- On Thursday, European Central Bank President Christine Lagarde warned that the coronavirus pandemic was a threat to recovery. The ECB said that over the next quarter it would be setting its pandemic emergency purchase programme (PEPP) at a “significantly higher pace than during the first months of this year”.
- Data released on Friday by the Office for National Statistics shows that UK GDP fell 2.9% in January. This was better than expected with 4.9% forecasted. On Friday, US President Joe Biden signed into law his $1.9 trillion coronavirus relief bill.
- Our Breadth indicator is positive band our Momentum Indicator, ticked back up.
- The US stock-market was strongly higher last week. The week started off on a muted note with the US 10-year Treasury yield holding around its one-year high but many investors remained optimistic after Joe Biden’s $1.9 trillion stimulus package was passed in the US Senate the previous Saturday.
- Stocks were higher on Tuesday, particularly technology shares which bounced back strongly.
- On Thursday the President signed his $1.9 trillion stimulus package into law. The stimulus includes a direct payment of $1400 per person. Bank of America predict this will increase investment in equities from retail traders and lift stocks higher, extending the recent new highs in US markets.
- Our Breadth indicator stayed positive and our Momentum Indicator ticked back up again.
US Market 12th March 2021
The Big Picture 12th March 2021
Market Sentiment 12th March 2021
U.S. Risk Barometer 12th March 2021
Europe Risk Barometer 12th March 2021
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This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’