FEBRUARY MARKET UPDATE: 1ST MARCH 2021

The major global equity markets were all positive during the month of February despite a difficult last week caused by concerns over the rise in United States 10-year Treasury yields.  It is up more than 50 basis points since the year began.

Monthly performance to end of February 2021
FTSE 100 (UK) +1.2%
Dow 30 (US) +3.2%
Euro Stoxx 50 (Europe) +4.5%
Nikkei 225 (Japan) +4.7%

In terms of currency, £ Sterling ended February 1.40 US Dollars.  This was 2.0% higher than the figure at the end of January.

Against the Euro, £ Sterling ended February at 1.16 Euros, which was 2.4% higher than the January closing figure.

Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH) was 0.9% in January 2021 (this is January’s data which is reported in February).  This was up from 0.8% in the previous month, largely as a result of rising furniture and household goods, restaurants and hotels, food and transport costs.  The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 0.7% in January, up from 0.6% in December.

There were no further changes to the Bank of England base rate last week following the two previous cuts in March.  The current rate remains at 0.1%.

The Omnis Managed funds, Openwork Graphene Model Portfolios and Omnis Managed Portfolio Service provide you with a diversified asset allocation in line with your Attitude to Risk, investing in Developed Market Equities, such as UK, US, Europe and Asia Pacific as well as Emerging Market equities.  Cautious and Balanced investors will also have significant holdings in UK and Global Bonds, as well as Alternative Strategies.

We believe this multi-asset approach aims to minimise global equity market falls in volatile periods.  Past performance is not a guide to future performance.  The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations.  You may not get back the amount you originally invested.

WEEKLY MARKET UPDATE PODCAST 1ST MARCH: 

Global equity markets were largely down last week due to investors’ growing concerns of higher inflationary pressures that could accompany an economic recovery. Investors piled out of US Treasuries causing yields to surge. Sterling continues its strength weighing on the FTSE 100.

Monday Investment Club Episode 7 – Cryptocurrencies – PODCAST 17 MINUTES by Omnis Investments

US: Treasury yields spike and equity markets pull back
Equity markets pulled back last week because of lingering fears among investors of higher inflation. Investors piled out of government bonds, sending yields higher. The House of Representatives passed President Biden’s $1.9 trillion pandemic relief bill.

Asia: Stock markets down but confidence up
Chinese and Japanese stock markets fell in tandem with global markets. Sentiment in Japan has improved and is expected to continue to do so. In China, investors rotated to companies that could see demand pick up as restrictions are relaxed, such as airlines.

Europe: Volatile week and vaccination problems persist
In a volatile week, shares in Europe also fell during the week. Economic sentiment appears to be improving in some economies, but the challenges in the bloc’s Covid-19 vaccination rollout is expected to continue in the coming weeks.

UK: Lockdown exit plans published; GBP continues its strength
The FTSE 100 was down 1.9% as the British Pound strengthened during the week, before pulling back to settle at 1.39 USD per GBP. The Domestic FTSE 250 held up better during the week. Boris Johnson announced a plan for gradual ease of lockdown.

The Week Ahead
• In the UK, all eyes are on Rishi Sunak as he gears up to deliver the Spring Budget
• In the US, data from the Federal Reserve will shine a light on economic activity
• Globally, we will see data on how the service sectors are holding up.

Read more >>

At Money & Mortgages, our team are working and available during the coronavirus lockdown and we’re happy to arrange video meetings and phone appointments.  For more information please contact us on 0161 505 0601 or via email info@moneymortgages.co.uk

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