It was a short week for European and US equity markets last week due to the Easter bank holiday weekend. Asian markets were open on Friday 2 April.
Weekly performance up to 2 April 2021
FTSE 100 (UK)*
Dow 30 (US)*
Euro Stoxx 50 (Europe)*
Nikkei 225 (Japan)
*closed on Friday 2 April 2021
In terms of £ Sterling, it closed the week (to 2 April), at 1.38 US Dollars, which was 0.3% higher than the figure at the end of the previous week (26 March).
Against the Euro, £ Sterling closed on 2 April at 1.18 Euros, which was up 0.6% on the closing figure on 26 March.
Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 0.7% in February 2021 (this is February’s data which is reported in March). This was down from 0.9% in the previous month, largely as a result of falling prices for clothing, second-hand cars, and games, toys and hobbies. The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 0.4% in February, down from 0.7% in January.
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.
ACTIVE & PASSIVE INVESTMENT APPROACHES:
The benefits and drawbacks of active and passive investing are often the subject of fierce debate. Our latest investment update explores the differences and advantages of both strategies, and explains why Omnis take an active approach to investing.
A generally positive week for stock markets globally. Optimism of economies reopening bode well for markets, despite some European countries seeing higher cases and extended lockdown measures. Investors continue to keep a watchful eye on inflation.
MONDAY INVESTMENT CLUB EPISODE 11 – AROUND THE WORLD IN 30 MINUTES by Omnis Investments
US: Investors weigh optimism of reopening against rising inflation
With a strong start to the week, the S&P 500 ended the week up 1.6%, as bond yields fell modestly. Investors seemed to continue weighing optimism about reopening against inflation and interest rate concerns. Inflation appeared muted for February.
Asia: Chinese stocks post positive returns
The CSI 300 ended the week up 0.6% due to a rally on Friday, led by consumer stables and healthcare stocks. This was the first positive weeks following 5 weeks of declines in China. Since a record high in mid-Feb the CSI 300 has shed 15%.
Europe: Additional restrictions and hopes of economic recovery
The EuroStoxx 50 was up 0.8% on hopes of an economic recovery, reversing losses stemming from concerns about additional restrictions to curb the spread of the virus and threat of the EC to halt vaccine exports. Lockdowns are extended in several countries.
UK: More than half of adult population has received first dose
The FTSE 100 and FTSE 250 gained 0.6% and 0.4% respectively. The British pound ended the week weaker at 1.38 dollar per GBP. Inflation unexpectedly slowed down in February. Over 30 million people have received at least one dose of vaccine.
The Week Ahead
In the UK, GDP, consumer credit and housing data released
In Europe, inflation and consumer confidence data released
In the US, focus will be on the $3 trillion spending commitment to Build Back Better
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