23rd April 2021

Weekly Round Up

Global equity markets retreated this week with fear and uncertainty starting to escalate. UK markets fell on Tuesday, registering the biggest fall since late February.

The FTSE 100 closed 2% lower and the FTSE 250 -1.7%. The decline is a result of growing concerns over the number of Covid-19 infections outside of Europe. As infections continue to hit new highs, expectations of a global economic recovery have been derailed. Vaccination rates in countries such as India remain significantly behind those in Europe and the US.

US markets have seen a volatile trading week, with the Dow Jones falling 1.25% and the S&P 500 falling 1.4% between Monday and Wednesday, before staging a strong recovery through the early parts of trading on Thursday.

Wall Street went into a sharp reversal after reports of President Biden’s plans of substantial capital gains tax proposals on the wealthy. This resulted in the Dow Jones dropping -1%, while the S&P 500 turned earlier gains into a session loss of 0.9%.


RISERS

Morgan Sindall Group, a British construction and regeneration group, has seen a +17% rise this week on the back of a strong trading update which suggests that the full year performance will be significantly ahead of its previous expectations.

FALLERS

British manufacturing company, Melrose Industries has fallen -9% on the week, following the announcement of the sale of Nortek Air. The initial reaction to the sale was positive with shares rising over +2%. However, the upbeat attitude was dampened as the focus switched to the longer than expected timeframe of the return of capital to shareholders.