Equities

US equity indices were mixed, with growth sectors outperforming. European indices were little changed, despite the rapid climb in Covid-19 infection rates. Japanese markets were steady in advance of a new stimulus programme, while China shrugged off a fund-raising round from its beleaguered property sector.

Bonds

US Treasury bonds rallied a little as the week ended, on reports of further pandemic lockdowns in Europe, where a similar pattern was seen in core Eurozone markets. In the corporate bond markets, high levels of investment grade issuance was easily absorbed, while high yield bonds were pulled lower by the energy sector.

Currencies

The US dollar hit a sixteen-month high, as both the euro and the yen weakened in response to indications from their respective central banks of a prolonged dovish stance.

Commodities

Oil prices moderated somewhat, while natural gas prices in Europe touched €100, as Germany put approval of the Nord Stream 2 gas pipeline on the back burner.

Responsible investing

President Biden’s $1.75 trillion ‘Build Back Better’ stimulus package, featuring social security and climate impact measures, was passed by the House of Representatives.