Please see below commentary received from Blackfinch Group this morning, which provides market analysis as Lockdown 3.0 continues in the UK and Joe Biden is inaugurated as 46th President of the United States.
UK COMMENTARY
- The Office for National Statistics released labour productivity data showing that output per hour, the UK’s headline measure of labour productivity, increased 4.0% year-on-year in the third quarter of 2020, the largest increase since the fourth quarter of 2005. The Coronavirus Job Retention Scheme continued to impact output per worker productivity, which fell 7.9%.
- Inflation, measured by the Consumer Price Index, rose 0.6% in November, pushed higher by transport and clothing costs.
- Average house prices in the UK jumped 7.6% in the year to November 2020, to reach a record high of £250,000.
- Retail footfall fell 10.9% in the week to the 16th of January, with year-on-year footfall down 67.5%.
- Retail sales data showed volumes fell 1.9% in 2020, with clothing sales the hardest hit, falling by a quarter from the previous year.
- IHS Markit/CIPS flash UK composite purchasing managers’ index (PMI) in January fell to an eight-month low of 40.6, down from 50.4 in December.
US COMMENTARY
- Joe Biden was inaugurated as 46th President of the United States and got straight to work, using executive orders to reverse some of Donald Trump’s more controversial actions, including returning the US to the Paris Climate Agreement.
- President Biden also moved forward with his plans to launch a further stimulus package, but investors await final confirmation of the deal.
- Incoming Treasury Secretary Janet Yellen called on Republicans to back the stimulus package and urged the US to “act big” to revive the economy.
- US initial jobless claims fell to 900,000 last week, but remain at elevated levels. Continuing claims also fell marginally by 127,000 to 5.18mn.
ASIA COMMENTARY
- Official data showed Chinese gross domestic product was 2.3% in 2020, having expanded by a better-than-expected 6.5% in the fourth quarter.
COVID-19 COMMENTARY
- New research by BioNTech found that its vaccine, jointly produced with Pfizer, is effective against the new variant of COVID-19 originally identified in the UK. The results echo those from a previous Pfizer study that showed the vaccine was effective against virus mutations identified in the UK and South Africa.
The ever-changing world we live in reinforces the importance
of regular up-to-date communication. Please check in again with us soon for further market updates and news.
Stay safe.
Chloe
25/01/2021