Please see below Monday Market Update received from Blackfinch Group this morning, which reflects on how the market is reacting to current world events.
UK COMMENTARY
- Boris Johnson announced a third national lockdown, with households told to stay home until at least 22nd February.
- Chancellor of the Exchequer Rishi Sunak unveiled a £4.6bn grants package to help businesses survive the new lockdown.
- Retail footfall declined sharply after Christmas, according to market researcher Springboard. The number of recorded shoppers was down 23.2% week-on-week and 55.7% year-on-year.
- British supermarkets enjoyed their busiest ever December, with shoppers spending £11.7bn on groceries over the month.
- December saw seasonally adjusted Purchasing Managers’ Index (PMI) survey data for the manufacturing sector rise to a three-year high of 57.5, up from 55.6 in November.
- Services sector PMI rose to 49.4 in December, up from 47.6 in November, but remained below the 50.0 breakeven mark, suggesting activity was still contracting.
- PMI survey data for the construction sector eased slightly to 54.6, down from 54.7 in the previous month.
US COMMENTARY
- The Democratic Party won both seats contested in the Senate run-off elections in the state of Georgia, securing control of the Senate due to the vice-president’s casting vote.
- Protest groups stormed the buildings on Capitol Hill following Donald Trump’s speech outside the White House. The scenes shocked onlookers around the world, with more than 60 police officers injured and five people dead. However, the violent protests did not stop the certification of Joe Biden’s electoral victory.
- The US economy shed 140,000 jobs in December, the first monthly decline since April.
- Initial jobless claims data beat expectations, with the number of US citizens filing for first-time unemployment falling to 787,000, despite economists predicting a reading of 800,000.
- ISM PMI manufacturing survey data defied market expectations and rose strongly to 60.7 in December, up from 57.5 in November.
ASIA COMMENTARY
- In China, Caixin/Markit PMI survey data for the services sector fell to 56.0 in December, compared to the November reading of 57.8.
We will continue to source and publish relevant market analysis and news as we push through the UK’s 3rd national lockdown in the knowledge that we have 3 approved vaccines to be rolled out. Please check in again with us soon.
Stay safe.
Chloe
11/01/2021