Posted on: 22nd January 2021 in News
Good day, this is Holborn’s weekly market recap. Let’s take a look at this week’s news in finance.
News in finance: On Monday, the National Bureau of Statistics in China announced that the country’s GDP grew by 6.5% in the fourth quarter of 2020, on an annualised basis. The figure was 0.4% higher than the one anticipated by economists.
News in finance: On Tuesday, a survey by the ZEW economic research institute showed that investor sentiment in Germany rose in January on improved expectations for exports. Market analysts noted that “despite the uncertainty about the further course of the lockdown, the economic outlook for the German economy has improved slightly.”
News in finance: The People’s Bank of China announced that it would keep its benchmark interest rate unchanged at 3.85%. The rate was last cut in April 2020. Analysts at the UOB bank suggested that “with the sustained momentum in economic recovery since the second quarter of 2020, the PBoC is not likely to add on more stimulus measures this year.”
The Office for National Statistics (ONS) in the UK announced that the country’s inflation stood at 0.6%, on a year-to-year basis, in December 2020. The figure was slightly better than the expected 0.5%. Economists noted that “an increase in transport costs and a rise in computer games console prices as Christmas approached was only partially offset by cheaper takeaway food and lower furniture and household equipment prices.”
In eurozone’s financial updates, Eurostat published a survey which showed that the bloc’s inflation stood at -0.3% on an annualised basis in December 2020. Inflation has remained in negative territory for the fifth consecutive month.
The Bank of Canada’s (BoC) governing board announced that it would keep interest rates on hold. The council upgraded its forecasts for the domestic economy and the world economy, and lowered the risk outlook, citing the early arrival of vaccines to combat Covid-19.
News in finance: The Bank of Japan’s (BoJ) governing council convened to decide on interest rates. In its post-meeting report, it announced that it would keep its benchmark interest rates unchanged and upgraded its economic forecast for the next fiscal year. The BoJ’s Governor, Haruhiko Kuroda, stressed that any steps the Bank would take would not lead to a withdrawal of stimulus.
The European Central Bank (ECB) kept its interest rates on hold after its monthly meeting. The council expects the key ECB interest rates to remain at their present or lower levels until headline inflation rises above 2%.
News in finance: In the UK, data released by the ONS showed that retail sales rose 2.9%, on an annualised basis, in December 2020. The figure disappointed market analysts as they had forecast a 4% rise. Economists at the British Retail Consortium (BRC) said that “retailers had not had the festive bounce in trade they had expected.”
We hope you enjoyed the weekly market recap. From all of us at Holborn Assets have a lovely weekend!
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