22nd January 2021
This week’s FTSE 100 performance has been rather muted, down -2%. Retail sales performed worse than expected, and despite volumes rising 0.3% month-on-month in December this has not offset the 4.1% fall seen in November.
Sterling was up to a near three-year high as vaccine news provides optimism for investors. The stronger pound often acts as a drag on the FTSE 100.
The US markets have been boosted by President Joe Biden’s inauguration, welcoming a proposed $1.9tn stimulus bill. Both the S&P 500 and the Nasdaq Composite have hit all-time highs this week.
It was a good week for food and delivery services as Just Eat and Ocado rose 6%, with Greggs and JD Wetherspoon both rising 10%. With the potential for lockdown measures being lifted as Covid-19 vaccines are rolled out across the UK, there is hope the hospitality sector can re-open as we move into Spring.
Despite a good rally a couple of weeks ago, oil companies have felt the pain of rising concerns over new restrictions put into place in China. BP is down 5%, whilst Premier Oil is down nearly 9%.