Equity markets

US markets dipped last night with the Dow finishing down for the first time in 4 sessions. This came as the streak of better-than-expected economic data came to an end with initial jobless claims unexpectedly jumping to a one-month high last week.

Retail giant and Dow 30 component Walmart (WMT) also weighed on the index dropping 6.5 per cent after it missed quarterly profit estimates and predicted a low-single digit rise in fiscal 2022 net sales.

Source: Yahoo Finance

Whilst US Markets are flat for the week, UK and Asian equity markets have performed well with signs of China’s economic recovery continuing lifting the Hang Seng and good news on UK vaccination progress sending the FTSE 100 higher.

Source: Bloomberg

The ASX200 again hit post COVID highs this week before pulling back slightly. Optimism in the Australian economic recovery was bolstered this week with another drop in the unemployment rate and vaccine rollouts imminent.

Forex markets

FX markets were mixed this week, the US dollar strengthened modestly against most major currencies, with the exceptions of CAD, AUD and GBP.

Source: Bloomberg

Resource linked currencies AUD and CAD performed well as prices for Copper and Iron ore continued to run hot, with increased demand from China and ongoing COVID related supply issues underpinning the price of these resources.

Source: marketindex.com.au

GBP outperformed this week amid continued optimism over the nation’s vaccine rollout, with the pound touching the highest level versus the euro since March last year.

Source: GO MT4

Commodities

Gold

Spot gold (XAUUSD) continued its downtrend setting a new low price for 2021 and within touching distance of the lows set in November. With markets risk on as vaccines rollout and positive signs of an global economic recovery the lustre has been taken off the precious metal for now.

Source: GO MT4

Oil

US crude prices broke above $60 per barrel touching as high as $62 , a level not seen since January 2020.

Severe winter storms and rolling blackouts in the oil producing state of Texas have crippled the oil industry, causing an output drop of more than 4 million barrels a day – almost 40% of the nation’s crude production.

Monday, 22 February 2021  Indicative Index Dividends Dividends are in Points
ASX200	WS30	US500	US2000	NDX100	CAC40	STOXX50
0.821	6.645	0.323	0.011	0	0	0
ESP35	ITA40	FTSE100	DAX30	HK50	JP225	INDIA50
0	0	0	0	0	0	10.131