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This time last week we thought we would be giving you an update on the progress of the US/China trade tensions following the Phase 1 review over the weekend and potentially something on a new US virus relief stimulus package.
Yesterday’s (13 August 2020) US jobless claims data came in much better than expected.
Yesterday’s US CPI inflation came in higher than expected, with the headline rate rising from 0.6% in June to 1.0% in July, while the core reading, which excludes volatile items such as food and energy, came in at 1.6%, up from 1.2% in June.
This morning’s headlines have been concentrated on the UK’s Q2 GDP data, which showed the UK economy contracted by 20.4%.
Just like parents waiting for their children’s A-Level results this week, equity markets have a nervous wait for this week’s review of the Phase 1 US/China trade deal, given China is currently behind on its agreed US purchases.
While UK equities fell yesterday following the BoE’s monetary policy meeting, coupled with news that the commodity trader and miner, Glencore, was the latest company to announce it was cutting its dividend (which hit all of the miners – a sector that makes up around 10% of the FTSE-100), US equity markets closed higher last night following economic data which showed that fewer Americans filed for jobless benefits.
The BoE’s monetary policy decision, meeting minutes and forecasts were all released at 7am this morning.
Good news is hard to find from watching TV or reading the tabloids – and no wonder given the list of negatives, for example: the recent reacceleration in coronavirus infections; the continuing Republican/Democrat standoff in Washington over the amount of support that is needed for those companies and workers that have been negatively impacted by the coronavirus; the deteriorating US/China relations over trade, Taiwan, Hong Kong and now the TikTok app; and following yesterday’s explosion in Beirut, tensions in the Middle East could start to rise once again.
Global equity markets have started August in a positive mood, with the FTSE-100 closing yesterday (Monday 3 August 2020) up over 130 points, or nearly 2.3% – and is today, as we write, up a further 15 points, or 0.25%.
Markets settled lower yesterday as we await the finalisation of a fiscal stimulus package in the US, in addition to Q2 reporting season continuing to be in full flow
The ban on contingent charging for defined benefit (DB) pension transfers, where financial advisers only get paid if a transfer goes ahead, takes effect from 1 October 2020.
22nd September 2020
The Government’s Coronavirus Job Retention Scheme ends on 31 October 2020 in which a third of the UK workforce were furloughed.
21st September 2020
With many household incomes under pressure following the impact of coronavirus, it may be tempting for those aged over 55 to consider withdrawing from their pension early.
24th August 2020
The end of our summer unfortunately coincided with a sharp fall in global equity markets.
23rd September 2020
Global equity markets have got off to a reasonable start this week, helped by news that AstraZeneca had resumed UK clinical trials of its coronavirus vaccine
16th September 2020
There has been a universal picture of doom and gloom across the media so far this week, thanks to UK/EU political posturing over Brexit; concerns over the end of the government’s Job Retention (furlough) Scheme; the resurgence in coronavirus cases (and associated localised restrictions); and continued weakness in US equity markets.
10th September 2020
