UK vaccinations and a silver frenzy drive markets

Published at Feb 2, 2021, in Market Wrap

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.

On the vaccination-front, the UK is ramping up their process to such a degree that close to 1% of the population was inoculated on Saturday alone.

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.


View Our Investment Portfolios


S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X