Stocks higher this morning as markets focus on positives

Stocks higher this morning as markets focus on positives 981 980 Realm

Stocks are higher this morning. Markets appear to be focusing on businesses reopening rather than the civil unrest in the U.S. and tensions between the Trump administration and China.


Global Macro

  • The ISM New York Current Business Conditions index increased to 19.5 in May of 2020 from a record low of 4.3 in the previous month. The reading still pointed to a sharp deterioration in NY business conditions although purchasing managers reported across the board increases as gradual reopening signal the beginning of the end of the coronavirus pandemic shock. The six-month outlook went up to 48 from a record low of 26.4.
  • Net mortgage borrowing by UK households was GBP 0.3 billion in April 2020, the lowest net increase since December 2011 and below market expectations of GBP 1.1 billion. The annual growth rate also eased to 3.3%from 3.6%in March. Mortgage borrowing tends to lag approvals, however, so this strength is likely to reflect strength in approvals in previous months.
  • Consumer credit in the United Kingdom plunged by GBP 7.4 billion in April of 2020, following a GBP 3.8 billion decline in the prior month and more than an expected GBP 4.5 billion slump. That was the largest decline in consumer credit since the series began in 1993, amid the impact of the coronavirus pandemic on spending. Credit card lending fell by GBP 5 billion (vs GBP -2.5 billion in March) and other loans and advances went down by GBP 2.4 billion (vs GBP -1.4 billion in March). The extremely weak net flows of consumer credit meant that the annual growth rate fell below zero in April, to – 0.4 percent, the weakest since August 2012. Credit card lending slipped 7.8%(vs -0.3%in March); while other loans and advances rose 3.1%(vs 5.6%in March).
  • On Tuesday: European stocks rose to hit their highest level in nearly three months as optimism around a post-coronavirus economic recovery helped offset jitters over increasingly violent social unrest in the U.S. and rising U.S.-China tensions. US stocks moved mostly higher over the course of the trading session, lifting the Nasdaq to its best closing level since February, while the Dow and the S&P 500 reached three-month closing highs. Asian stocks rose as hopes of an economic recovery after the coronavirus pandemic helped offset jitters over social unrest in the U.S. and rising U.S.-China tensions.
  • Tuesday’s data below:

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