Posted on 21st April 2021
China Returns From the Ashes One of the world’s most dominant superpowers continues to make the headlines. Once the home of Covid-19, the world's second largest economy is back with a bang. Thanks to efficient restrictions China is riding the recovery wave whilst other countries are still reeling in the unprecedented panic of the pandemic. Representing the largest growth in GDP since quarterly records began in 1992, the economy noted a growth of an impressive 18.3%!China Returns From the Ashes One of the world’s most dominant superpowers continues to make the headlines. Once the home of Covid-19, the world's second largest economy is back with a bang. Thanks to efficient restrictions China is riding the recovery wave whilst other countries are still reeling in the unprecedented panic of the pandemic. Representing the largest growth in GDP since quarterly records began in 1992, the economy noted a growth of an impressive 18.3%! 2020 was a whirlwind of year, and whilst the vast majority of countries suffered crippling blows to the economy - China was one of the only countries that still managed to record some level of growth. As economies continue to scramble back to where they were, the markets could pose some interesting opportunities for investors and traders alike. Rishi Sunak and The Digital Pound? With the start of the UK's Fintech Week 2021, The Bank of England and UK Treasury are the latest to jump on the CBDC bandwagon... Last week we touched on China’s new digital ‘renminbi’ and its possible implications for the dollar. It’s apparent that this is a popular topic of economic conversation - now with Rishi Sunak announcing a dedicated taskforce to work towards the UK’s very own digital currency. A move to bolster the UKs formidable leadership in fintech adaptation, the CBDC taskforce hopes to push the boundaries of modern technology and financial innovation. We can expect to see some serious fintech investments this week, so keep those eyes peeled and ears tuned! The UK Property Market...Rosier Than Ever Before! Recent data shows the UK property market is back with a vengeance, soaring to a record all-time high. Climbing out of bleak pandemic depths, the average asking price has risen by 2.1%...just over the last month! As we breathe life back into our economy, consumer confidence takes the reins of the UK housing market once again. A perfect mixture of affordable mortgages, government support and general housing shortages has allowed a clear-cut rise in housing prices. GBP could be one to watch this coming few weeks; as the economy starts to open up and housing prices soar, sterling is in a good position alongside the likes of AUD and NZD - who are also feeling the economic optimism of post-covid sentiment. Indian Economy In Freefall Officially one of the biggest losers in the emerging markets - the Rupee hit a nine-month low last week after a drastic rise in Covid-19 cases. With the light at the end of the tunnel dimmed once again, the Rupee along with Indian stocks continue to plummet. With major economies slowly starting to recover, the rupee along with Indian stocks are still feeling the brute force of lockdown amidst concerns about a return to normalisation. New Sanctions For Russia Late last week Russia was handed a fresh set of sanctions from the Biden administration over apparent US election interference and cyber attacks. The sweeping sanctions targeted 38 Russian entities and numerous technology companies- resulting in a harsh blow to Russian market strength and resulting in a 2.2% drop for the Russian Rouble before recovering some initial losses. The news didn’t go well for Russian assets, spurring immediate sell-offs. Similarly, Moscow’s Moex Index dropped 0.6% alongside the RTS index which also dropped 1.8%. First Ethereum ETF! Crypto investors were rejoicing last week with the public listing of Coinbase, yet the next pillar in digital assets follows this week with the very first Ethereum ETF - another landmark in crypto history. Following the success of their Bitcoin ETF in February, Purpose Investments are back at it with a new Ethereum ETF for direct investment in Ether, Ethereum’s very own blockchain currency. The new ETF represents another stepping stone in public crypto investment, and alike the bitcoin surge we can expect to see a huge demand from investors worldwide. Deemed as one of the most exciting technological visions today, does Ethereum warrant more excitement than Bitcoin?