The Monday note - 6 March 2017

• The FTSE 100 closed on Friday at 7,374.3, up nearly 131 points on a week earlier, as the shares of commodities firms rallied on expectations of a stronger US dollar. Ten year Gilt yields stood at 1.19%. 
• Inflation in the Eurozone increased to 2.0% in February, which takes it above the ECB’s target level. This will fuel the debate on whether the Eurozone should end its QE programme sooner than originally planned. 
• Unemployment in the Eurozone fell to 9.6% in January, down from 10.4% a year ago, which is its lowest level since May 2009. However, this is still around twice the level recorded in the US and UK. 
• US tech firm Snap Inc saw its market value jump by 44% on its first day of trading on the New York Stock Exchange. The firm’s IPO was ten times oversubscribed, and its 26 year old CEO, Evan Spiegel, is now worth $5.4 billion. 

Chief Economist comments: 

In recent years US tech start-ups have held back on listing on the stock exchange due to volatile financial markets. Snap Inc has tested the water for tech firms considering an IPO, and are pleased with the response from Wall Street. Others will probably follow suit. Over the next year or so, more tech firms could find themselves with funds to invest; whether it be on recruitment, takeovers, or overseas expansion. The digital wave is about to gain momentum.