Key Weekly Data Points – week commencing 29/06/2020

Daniel Casali provides a round-up of key market activity during the week of 29th June.

Monday 29th

• Economic sentiment in Europe rose to a three-month high in June, according to the European Commission’s Economic Sentiment Indicator. This was driven by France, Austria and Portugal.
• In the US, pending home sales rose by 44.3% in May suggesting that pent up demand in the housing market may be stronger than initially thought.

Tuesday 30th

• Boris Johnson pledged £5bn of capital spending to help Britain remerge from the coronavirus crisis.
• Deposits held by households rose to £25.6bn in May, giving hope to increased consumption as shops begin to reopen. However, mortgage lending dropped to its lowest level on record as the housing market remained stagnant.
• UK GDP dropped 2.2% quarter on quarter in Q1 of 2020, the biggest fall since 1980.

Wednesday 1st

• The Bank of England’s chief economist, Andy Haldane has said Britain is on track for a V-shaped economic recovery, despite the UK economy contracting more than expected in Q1 of 2020.
• Italy is preparing a 20bn EUR plan that would push the 2020 budget deficit to around 11.6% of GDP

Thursday 2nd

• Police in Hong Kong made their first arrests under the new national security law
• Tesla became the world’s most valuable car manufacturer, in a boost for electric cars and Elon Musk
• Non-farm payrolls in the US increased by 4.8m in June. Whilst unemployment remains at 14.7m, the economic recovery has been stronger than initially anticipated.

Friday 3rd

• The Composite (services and manufacturing) Purchasing Managers Index (PMI) in the Eurozone rose to 48.5 in June, which was stronger than expectations and supports a V-shaped recovery, although activity remains below crisis levels
• In China, the June Caixin/Market services PMI showed a 10 year high, suggesting a strong recovery in the services industries as lockdown begins to ease

Source: Bloomberg.com; Citi; JP Morgan; Capital Economics 

Risk warning
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DISCLAIMER
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.

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