Tuesday 23 March 2021

Markets rise, lira plunges

Markets were mostly higher on Monday.

The S&P 500 rose 0.7 percent, the STOXX Europe 600 rose 0.2 percent and the Shanghai Composite rose 1.1 percent.

However, the Nikkei 225 plunged 2.1 percent, with chipmaker Renesas Electronics sinking 4.9 percent after it announced over the weekend that it will take at least a month to restart production at a facility that was damaged by fire on Friday. That dragged down the large automakers like Toyota, Nissan and Honda, all of which fell over 3 percent.

Otherwise, markets largely shrugged off a sharp plunge in the Turkish lira. The latter followed Saturday’s dismissal of the central bank governor Naci Agbal, two days after he hiked interest rates to curb inflation.

In the US, a decline in the 10-year Treasury yield to 1.68 percent helped stocks rally.

In the meantime, Quilter Investors portfolio manager Sascha Chorley said that “this looks like the best time to add into government bonds since 2015”.

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