Market Overview – 16/03/2021

It was a week of positives from a market’s point of view, particularly in the US following President Joe Biden’s $1.9 trillion stimulus package being signed off. US equities finished the week up 2.6% having reached a new all-time high on Friday. This performance would be a welcomed breath of fresh air for some after the region has struggled to perform in the weeks prior. The likely catalyst for this change of pace being the incoming stimulus checks for US citizens in tandem with positive vaccine rollout news with Biden hoping to have enough vaccines for the entire US population by the end of May. Treasury yields also saw a positive jump on Friday following the news.

Elsewhere, the FTSE 100 finished the week up 2% as it clings onto the coattails of the wider market. Following the events we saw at the beginning of the year when retail investors worked together to fight against the hedge fund giants of Wall Street, there has been a significant uptick in retail investors in the US. Consequently, with the upcoming stimulus checks beginning to roll out later this week, a respectable portion of this cash is expected to be pumped into the stock market.

A key event to look our for this week includes the Bank of England’s next Monetary Policy Committee meeting on Thursday which could provide some speed bumps for the UK’s performance this week. However, we will have to wait and see if the discussion is comprised of anything other than the rate of inflation and reassurance of the economy’s recovery.