Market Update

As shown in the accompanying table, the FTSE-100 concluded the week above the 7,000 mark, a level not witnessed since February 26, 2020, which stands in stark contrast to the sub-5,000 level it plummeted to during the tumultuous days of last March.
While this development is undoubtedly promising and reflects the economic rebound we've been discussing in these commentaries, it's important to note that the index still lags significantly behind its all-time high of 7,877.
Nonetheless, several factors offer a glimmer of hope for investors. The UK's swift and successful vaccination campaign, the burgeoning confidence among consumers as the economy reopens, an index that is attractively valued compared to its global counterparts on various metrics, and an economy poised to be one of the fastest-growing in the coming years all combine to provide a sustainable tailwind toward that elusive all-time high.
That said, we've frequently stressed the capricious nature of financial markets in these Weekly Market Summaries. It's noteworthy that all major global equity markets enjoyed a positive week, with the exception of China.
The knee-jerk reaction in Chinese equities appeared to express disappointment over Q1 GDP growth, which came in at a "mere" 18.3%, falling slightly short of consensus estimates at 18.5%. When discussing economic growth of such magnitude, the likelihood of a slight deviation from estimates becomes more substantial. Therefore, a marginal 0.2% miss on an 18.5% estimate should not have had a significant impact, especially considering the distortions caused by economic declines a year ago.
Furthermore, this development offers further validation that the global economic recovery is gaining momentum as economies gradually reopen.
Moreover, Chinese retail sales data for today (April 16, 2021) takes precedence as it has been lagging behind the recovery seen in other Chinese economic indicators. Impressively, it revealed a substantial surge of 34.2%, surpassing economists' expectations of 28%.
This week also witnessed the release of other noteworthy economic data. In the United States, the Fed's Beige Book upgraded its assessment of the economic recovery from 'modest' to 'moderate.' Additionally, weekly initial jobless claims in the U.S. declined to 576,000, marking the lowest reading since the onset of the coronavirus pandemic.
However, what truly ignited our enthusiasm was the U.S. retail sales figure. Bolstered by the accelerated distribution of vaccines and the $1,400 stimulus payments from President Joe Biden's fiscal package, U.S. retail sales surged an astonishing 9.8% in March, handily surpassing the anticipated 5.8%.
Looking ahead to the forthcoming week, there is a slew of economic data to monitor, including PMI data for the U.S., UK, Eurozone, and Japan; UK employment figures (unemployment rate and weekly earnings); UK CPI inflation data; UK retail sales figures; and an ECB monetary policy meeting.