Market Analysis – March 2021
Major global indices closed March in positive territory as recovery hopes continue. In the UK, the vaccine rollout continues at pace and the unlocking roadmap is progressing.
In the US, technology shares led the S&P 500 to a record high on the last day of the month and the three major Wall Street indices headed for their fourth straight quarterly gains, with investors awaiting full details of President Joe Biden’s massive $2.3trn infrastructure plan.
In the UK, the FTSE 100 closed the month on 6,713.63, a gain of 3.55%. The FTSE 250 gained 2.91%, while the AIM index closed up 1.24%. The Euro Stoxx gained 7.78% in the month, while the Nikkei 225 closed March up 1.46%. In the US, the Dow closed the month on 32,981.55, a monthly gain of 6.62%, while the Nasdaq closed up 0.41%.
On the foreign exchanges, sterling closed the month at $1.37 against the US dollar. The euro closed at €1.17 against sterling and at $1.17 against the US dollar.
The Suez Canal blockage, which had been supporting oil prices towards the end of the month, is now over and all eyes now turn to the next OPEC+ meeting, which is expected to result in continued restraint, with options that including an output roll-over and a gradual output increase. Brent crude closed the month trading at around $64 a barrel, a similar price to last month. Gold is trading at around $1,691 a troy ounce, a loss of 4.98% on the month.
The value of investments may fall as well as rise. You may get back less than you originally invested.