News / Analysis
Finance Update – Markets Jump Back Despite Main St. CatastropheJuly 6, 2020
Asia – Aussie Interest Tonight
Asian indices are all in the green this morning led by the FTSE’s China A50, which boasts a 4.53% increase. Analysts believe the optimism is being fuelled by hopes for more fiscal stimulus.
Zerohedge, quoting China’s Passenger Car Association, reports a 37% drop in car sales last week, whereas on Friday, the Caixin services PMI leapt to 58.4. Japan’s figure, courtesy of Jibun Bank, nearly doubled to 45 in June.
With its central bank meeting tonight, Australia’s CommBank service & composite PMIs Thursday were level, retail sales jumping back to a 17% expansion, following an 18% contraction in May.
Europe – Barnier Warns Banks to Prepare for Post Brexit Reality
European indices all ended the week in the red, the FTSE hit by a 1.33% drop. Consumer confidence in the UK improved slightly to -27 while the services PMI added a tick to 47.1. And Reuters reports an SMMT report stating that new car sales fell by a 1/3 in June (annualised).
PMIs throughout the zone were generally up, France and Spain continuing just north of expansionary, after May’s PPIs the day before showed a disappointing -5% reduction YoY. Unemployment improved by a tenth to 7.4% in May.
Americas – Kanye for President
With news that rapper Kanye West will be joining the upcoming presidential race, US index futures are shooting up this morning after markets closed marginally up on Friday.
The dollar moved slightly on Thursday’s excellent 4.8mn NFP, diluted by 19.29 mn continuing jobless claims, 1.43mn initial claims, a larger drop in earnings than in May and a widening trade deficit.
Factory orders expanded but not as much as expected, and home sales in New York City plummeted 54% in Q2, their worst performance in 30 years.
In Canada, exports increased in May to $34.61 bn, sending the int’l merchandise trade deficit encouragingly down to $0.68 bn from April’s $-4.27 bn. June’s manufacturing PMI increased7 points to 47.8.
Commodities – Oil Undecided
WTI on Friday added 30 cents on the barrel after the Baker Hughes company delivered a 185 rig count the day before – 3 down from last week.
The commodity this morning is at 40.47 – the top of an upward wedge held in place by fears of slowing consumption in a COVID 2.0 impacted US market.
|06:00 AM GMT||Germany||Factory Orders|
|08:30 AM GMT||EU||Investor Confidence. Retail Sales at 9:00|
|08:30 AM GMT||UK||Construction PMI|
|01:45 PM GMT||US||Markit Services & Composite PMIs. ISM Non-Manufacturing PMIs at 2.|
|02:30 PM GMT `||Canada||Business outlook survey|
|04:30 AM GMT (+1)||Australia||Interest rates & statement|