Coronavirus Update

5th March

Weekly Round Up

The UK's leading equity index, the FTSE 100, has seen some volatility this week as inflation fears persist globally. Continued rises in the US Treasury 10-year yield bond rate present major concerns for equity investors.

Chancellor Rishi Sunak delivered the UK budget announcement on Wednesday. Whilst GDP growth estimates fell from 5.5% to 4% for 2021, the positive sentiment over the vaccine rollout and expectation that we will return to pre-pandemic levels by mid-2022, balanced market reaction.

UK markets recovered slightly on Friday following the tech sell-off in the US and Asia overnight on Thursday. UK oil majors, Shell and BP benefitted from rising oil prices following an OPEC meeting, up 3% this week.

US markets fell throughout the rest of the week, driven mostly by tech stocks as Federal Reserve Chairman, Jerome Powell, unnerved investors on the likelihood of inflation following the recovery.

 

Risers

The UK budget provided more stimulus for the housing market this week, with the announcement of an extension of the stamp duty holiday. Housebuilder Persimmon was up +10%, with residential property development company, Barratt Developments, showing increases of + 6%.

Fallers

Scottish Mortgage Investment Trust suffered another 6% loss as a result of the tech sell-off, taking it to a loss of -15% since the beginning of last week.