Weekly Round Up
Global equity markets have seen a relatively mild trading week. The recent rally in commodities is now showing signs of stalling. The FTSE 100 remains relatively unchanged through the week, despite the news that the UK economy fell 9.9% in 2020, the largest drop in 300 years, and double the fall during the financial crisis.
Inflation indicators remain relatively stable, however there is evidence that supply chain congestion could start to become an issue later in the year. If normal activity resumes throughout the year, demand could outstrip supply leading to increased prices.
US equity markets have shown marginal gains on the week, with the NASDAQ up +0.5%. Investors continue to digest President Biden’s $1.5 trillion stimulus package and its impact on capital markets.
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