UK vaccinations and a silver frenzy drive markets
Published 02-FEB-2021 10:44 A.M.
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Joshua Mahony, Senior Market Analyst at IG, discusses what is trending in the markets.
The FTSE 100 is enjoying a buoyant start to the week, with precious metal miners and high-street names leading the charge. However, fears remain thanks to weak Chinese PMI data, and questions around US stimulus efforts.
European markets have followed their Asian counterparts higher in early trade, with traders seemingly willing to overlook a host of risk factors that loom over markets. Weekend data from China has done little to boost sentiment over the economic recovery in the region, with both headline and Caixin PMI surveys turning sharply lower to signal slowing growth.
Despite the clear Chinese success in combating the Coronavirus, the January PMI readings highlight recent difficulties as cities such as Shijiazhuang were placed into lockdown. Meanwhile, hopes of an impending $1.9 trillion coronavirus package from Joe Biden have been dealt a blow after 10 Republican senators proposed a counter $600 billion measure.
Nevertheless, while this could signal difficulty in passing his $1.9 trillion package, there is a feeling that the Democrats could still pass much of that package via ‘budget reconciliation’ which would require a simple Senate majority.
UK coronavirus deaths and hospitalisations have finally started to turn the corner, following on from a dramatic decline in cases over the past week. Worries that the more contagious Covid strain were making lockdown measures less effective are being allayed by this latest development, although it is clear that these measures are likely to remain in place until vaccinations reach a critical mass.
While precious metal miners understandably lead the way this morning, the notable rise in high street names like JD Sport, Dunelm, and Restaurant Group does highlight the feeling that the UK vaccination efforts will help get things open as soon as possible.
Silver appears to be the latest toy for the Reddit community, with the precious metal spiking 10% in early trading today.
Fresh off a historic week that saw a host of downbeat US stocks dramatically appreciate, the latest targeting of silver prices highlights the lack of physical products to back the products currently being offered on Wall Street.
iShares Silver Trust ETF enjoyed a $1 billion inflow on Friday, with a weekend of physical silver shopping around the globe ensuring that those institutions will find it tough to source enough silver to back the latest surge in investment.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.