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Markets lower today as EU cuts economic forecast

Markets lower today as EU cuts economic forecast 981 980 Realm

Markets have pulled back today as the EU cuts its economic forecast for the year, and the rise in coronavirus cases in the US continues to weigh on sentiment.

 

Global Macro

  • The ISM Non-Manufacturing PMI for the US jumped to 57.1 in June, the biggest monthly percentage-point increase on record, from 45.4 in the previous month and easily beating market forecasts of 50.1. The reading pointed to the biggest rise in service sector activity since February, a month before the pandemic started, as businesses began to reopen after the lockdown.
  • Spot gold traded above $1,783 on Monday, not far from a near eight-year high of $1,789 reached last week, as a weaker dollar after better-than-expected ISM Non-Manufacturing PMI for the US prompted investors to buy the safe-haven metal. The yellow metal was also supported by worries about the global economic impact of surging coronavirus infections worldwide, particularly in the Americas. In the US, several states pause the ease of lockdowns.
  • Eurozone’s retail trade rose by a record 17.8 percent from a month earlier in May 2020, recovering from two consecutive months of record falls and compared to market expectations of a 15 percent jump, as several countries across the region lifted coronavirus-induced lockdown measures.
  • The IHS Markit/CIPS UK Construction PMI jumped to 55.3 in June 2020 from 28.9 in the previous month, easily beating market consensus of 47.0. The latest reading signaled the steepest increase in construction output since July 2018, due to the reopening of the UK construction supply chain following stoppages and business closures due to the coronavirus pandemic.
  • On Monday: European stocks rallied after Chinese markets soared on hopes the world’s second-largest economy will lead a recovery from the coronavirus crisis. Asian stocks rose broadly as signs of an economic rebound in China as well as hopes of more stimulus measures helped offset worries over a spike in Covid-19 cases in some U.S. states and other parts of the world. US stocks After showing a strong move to the upside early in the session, stocks remained firmly positive throughout the trading day on Monday. The major averages extended last week’s upward trend, with the tech-heavy Nasdaq reaching another new record closing high.
  • Monday’s data below:

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