ECONOMICS

Leading Indicators – July 27th

Key economic and financial metrics, and what to look out for in the week ahead.
Written By:
William Matthews, Knight Frank
1 minute to read
Categories: service Consultancy Topic Covid-19 Data Economics Forecast World Regions UK

In this edition:

  • Globally, bond yields are compressing. Uncertainty surrounding the economic outlook and the Delta Covid variant has fuelled increased demand for safety assets. UK government 10 year gilt yields have fallen to 0.58% and the US 10 year treasury yield has fallen to 1.29%. Meanwhile, German government bonds are at a five-month low of -0.43%.
  • UK company ‘births’ up 12% to 438k . The number of new companies is growing at a faster rate than in both 2020 and 2019 amid signs of a strong economic recovery in the UK, although company dissolutions are also rising as government support schemes are unwound.
  • UK REITs recorded growth across all sectors last week. UK retail REITs saw the strongest increase in total return, up almost 5%. With restrictions lifting in the UK, investors have sought to capitalise on REITs’ growth potential and inflation hedging characteristics, as well as possible upside from those REITs viewed as attractive M&A targets.

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