Team No Comments

Please see below for Blackfinch Group’s latest Monday Market Update Article, received by us yesterday 31/08/2021 due to the Bank Holiday:

UK COMMENTARY

  • Recruitment company Hays warned of “clear signs” of skills shortages worldwide and said hiring woes were pushing up wages in some hard-hit sectors. It also noted salaries are rising in certain industries as employers seek to attract and retain staff, particularly in the technology and life sciences sectors.
  • British car factories produced the fewest cars for any July since 1956 as they struggled with worker absences and the global shortage of computer chips. UK carmakers made 53,400 vehicles in July, a 37.6% drop when compared with July 2020, according to data from the Society of Motor Manufacturers and Traders (SMMT), the industry’s lobby group.

US COMMENTARY

  • The Chair of the US Federal Reserve (Fed), Jerome Powell, expressed concern about rocketing COVID-19 infections and was cautious on when it would start easing back on its stimulus programme. Powell’s remarks were far less hawkish than some Wall Street analysts had expected, and had a positive instant impact on the financial markets.
  • A new survey from the University of Michigan showed weakening US consumer confidence. Its consumer sentiment index fell from July’s final reading of 81.2 to 70.3 in August, the lowest recorded since December 2011.

EUROPE COMMENTARY

  • Rising prices, and the increase in COVID-19 cases, have knocked consumer confidence in Germany, the eurozone’s largest economy.
  • Figures released by Destatis showed that the German government’s efforts to fight the pandemic saw its budget deficit expand  by €80.9bn in the first six months of 2021. That’s equal to 4.7% of GDP, and the highest reading since 1995.

ASIA COMMENTARY

  • Sentiment was weighed down by weaker-than-expected August Purchasing Managers’ Indices (PMIs) from China. The non-manufacturing PMI fell to 47.5, the first sub-50 reading since February 2020 (a sub-50 reading represents a contraction), which was below the 52.0 expected and down from 53.3 in July. Several factors were behind the slowdown, including further lockdowns to control the spread of the Delta variant, flooding in some regions, and ongoing regulatory changes that have impacted domestic wealth.

Please continue to utilise these blogs and expert insights to keep your own holistic view of the market up to date.

Keep safe and well

Paul Green DipFA

01/09/2021