Weekly Market Update

Author : Rachel Poole
Date : March 13, 2021

Global Market News

Global equities rally
Global equities rallied this week after sustaining losses last week. The S&P 500 and Dow Jones were up 2.64% and 4.07% respectively. A tech rally brought the Nasdaq up 3.09% on the week, but the Nasdaq is almost flat for the year. The US 10-year Treasury note increased slightly from 1.57% last week to 1.62% at Friday’s close. The price of a barrel of West Texas Intermediate crude oil dropped slightly to $65.61 while volatility, as measured by the CBOE Volatility Index (VIX), dropped approximately 7 points from last week, ending this week at 20.8.

OECD increases global growth forecasts
The Organization for Economic Cooperation and Development (OECD) revised its 2021 global growth forecasts this week to 5.6% from 4.2% previously. Vaccination progress as well as the US’ huge stimulus program were major reasons the OECD decided to increase its forecast. Additionally, the organization expects global output to surpass pre-pandemic levels by the middle of 2021.

Updated Market Figures

Coronavirus Updates

Covid-19 by the numbers
Global Confirmed Covid-19 cases: 119,000,000 Global Covid-19 deaths: 2,630,000
US Confirmed Covid-19 cases: 29,300,000 US Covid-19 deaths: 531,000
*As of Friday evening

The pandemic turns one year oldThis week marked one year since the Covid-19 outbreak was declared a pandemic by the World Health Organization. Over the lifespan of the pandemic, more than 118 million people have been infected and more than 2.6 million people have died as a result of the virus. In many parts of the world, including the US, rates of new infection and death have begun to fall thanks to vaccination efforts, leading various regions to ease lockdown restrictions. However, we are not out of the woods yet: the number of new Covid-19 cases globally has increased by 12% over the last two weeks, according to New York Times tracking. Fortunately, the rate of Covid-19 deaths globally has dropped 7% over the last two weeks.

Geopolitics Spotlight

“Quad” meets as China and Russia collaborate
The leaders of Australia, India, Japan, and the US, nicknamed the “Quad”, met virtually yesterday in the group’s first leader-level summit. The group discussed a wide range of issues, with particular emphasis on its collective response to China, collaboration on climate change efforts, maritime security measures, and the pandemic response. Meanwhile, China’s ambassador to Russia said China is ready to regularly coordinate with Russia on their policies towards the US.

Deadly explosion devastates Equatorial Guinea
At least 105 people were killed and more than 600 injured in a devastating explosion in Equatorial Guinea last weekend. Three huge blasts and a series of smaller explosions occurred at the Nkoantoma Military Base completely destroying 243 structures in the city of Bata. Equatorial Guinea’s President Teodoro Obiang Nguema has said the incident was an accident caused by negligent handling of dynamite, but the country will conduct an investigation. Human Rights Watch has also called for an independent international inquiry.

US Social & Political Developments

Biden addresses the nation on vaccination progress
Thursday evening, President Biden addressed the nation exactly one year after the Covid-19 outbreak was declared a pandemic. He announced that all American adults will be eligible to receive the vaccine by May 1st and outlined the ways the government would make vaccines more accessible to all. By June, Pfizer, Moderna, and Johnson & Johnson expect to provide enough vaccines to fully vaccinate nearly 300 million people in the US.

Congress passes $1.9 trillion stimulus package
Congress passed the $1.9 trillion coronavirus relief package this week. The American Rescue Package, as it’s named, is one of the country’s largest economic rescue packages in history. The bill includes another round of stimulus checks of up to $1,400 for most Americans, enhanced unemployment benefits, and makes changes to the tax code to benefit families with children, among other things.

Corporate/Sector News

Disney+ reaches 100 million subscribers
Disney+ has reached 100 million subscribers just 16 months after its launch. At its current pace, the company projects it will reach 260 million subscribers by 2024. The achievement makes the Disney+ platform the most successful streamer – It took Netflix nearly a decade to acquire 100 million subscribers.

NFTs becoming popular in the crypto world
NFTs (Non-fungible tokens) are becoming quite popular in the cryptocurrency space. An NFT is a type of encrypted file run on the Ethereum blockchain that is used to represent unique assets such as ownership of memes, digital art, videos, etc. For example, a JPEG file of every image that artist Mike Winkelmann, also known as Beeple, has created since 2013 was recently sold for $69.3 million.

Corporations get clearance to administer vaccine
Many corporations are getting clearance from public health officials to administer Covid-19 vaccines to not only their staff but in some cases to the public as well. Among the companies that have received authorization are AbbVie, Abbott Laboratories, American Airlines, Caterpillar, Deere, Exxon Mobil, Tyson Foods, and United Airlines. Other corporations are offering incentives, such as paid time off or money for transportation, to employees who receive the vaccine.

Image of the Week

Where the Rich Are Getting Richer Around the World

Video of the Week

The carbon cycle is key to understanding climate change
Source: The Economist