Skip to main content Skip to site footer

You are using an outdated browser. Please upgrade your browser to improve your experience.

Archinomics Weekly - Monday 8th March 2021

4 months ago



US indices saw mixed fortunes, as a late rally in the S&P500 was not matched by the Nasdaq index of tech heavyweights. European markets ended higher, buoyed by hopes of unlocking, while the UK outperformed on the announcement of further fiscal stimulus. Japan’s Topix index climbed on the weaker yen and a rebound in the manufacturing sector, while China’s main index approached correction territory. Emerging markets saw notable strength among oil exporting economies.


US government bond markets were particularly hard hit, while their European counterparts held steady. The Bank of Japan pledged to keep yields on the 10 year government bond around 0%. US credit markets felt the impact of rising yields on longer dated US Treasuries. Emerging market debt spreads widened modestly, standing at 363 basis points over US 10 year Treasuries, while outperforming the Global Aggregate index.


The US dollar rose across the board, on expectations of earlier interest rate increases. The yen was weaker across the board after dovish commentary from the Bank of Japan. The euro weakened against all majors except the yen.


Oil continued to rally hard, as the OPEC meeting confirmed a willingness to restrain production increases into April. Iron ore hit a 10 year high, reflecting the strength of the rebound in demand.

Responsible investing

Italy’s first green bond of €8.5bn was in hot demand, receiving over €80bn of bids. This is more than double the demand seen for Germany’s debut green bond last autumn, indicating growing interest in this market segment.


US Federal Reserve chairman Jerome Powell promised a ‘patient’ approach to withdrawing monetary support as the recovery progresses, as well as underlining his vigilance against disorderly bond markets or a persistent tightening in liquidity.

China announced a GDP growth target of 6% for 2021, comfortably within market forecasts which exceed 8%. China will switch to annual growth targets, abandoning the five year average annual target of recent times.

US February ISM data for the services sectors saw a ‘big miss’, coming in at 55.3 against forecasts around 58.7, while nonetheless achieving the ninth straight month of growth.

on the

President Biden’s $1.9 trillion American Rescue Plan should be written into law on Tuesday, having received approval from the Senate over the weekend.

US February inflation data will be closely watched for signs of creeping towards the Federal Reserve’s 2% target, with consensus forecasts at 1.7%.

Listen to our weekly podcast for more information and our experts’ insights.


Latest investment news


Archinomics Weekly - Monday 19th July 2021

Article | Investments | 19/07/2021

US Treasuries reacted calmly to the inflation figure, as yields slipped slightly, and prices rose, for longer-dated bonds. Core eurozone yields also fell. 


The View: Summer 2021 edition

Article | Investments | 16/07/2021

The Summer edition of The View provides a step-by-step guide to how the political and economic environment has driven financial markets, and what this means for your investments.


Archinomics Weekly - Monday 12th July 2021

Article | Investments | 12/07/2021

US equities once again hit record levels, pulled higher by the interest rate sensitive real estate sector. Eurozone markets ended the week little changed after dipping on growth concerns, as Covid-19 infection rates climbed

We use cookies to give you the best possible experience of our website. If you continue, we'll assume you are happy for your web browser to receive all cookies from our website. See our cookie policy for more information on cookies and how to manage them.