- The UK stock-market was almost flat last week.
- Data from the ONS showed that the UK economy grew 3.6% in the three months to May. That’s the strongest growth since November but less than forecasted.
- UK Services PMI data from IHS Markit indicated that the strong recovery in service activity continued during June. Economics Director at IHS Markit, Tim Moore, said “The service sector recovery remained in full swing during June as looser pandemic restrictions released pent up demand for business and consumer services”.
- Eurozone growth hit a 15-year high in June. Chief Business Economist at IHSMarkit, Chris Williamson, said “Europe’s economic recovery stepped up a gear in June, but inflationary pressures have also ratcheted higher”.
- There was a sharp sell-off in stocks on Thursday sparked by rising concerns over the spread of the delta variant of coronavirus and its impact on global economic recovery. Friday recovered though, possibly helped by news that Pfizer and BioNTech are working on a Covid-19 booster jab targeting the delta variant.
- Our Breadth indicator stayed positive but our Momentum Indicator ticked lower. again
- The US stock-market was fractionally higher last week.
- Investors were focused on declining bond yields for much of the week with the yield on the US 10-year Treasury Note falling to its lowest level since February, although there was some recovery at the end of the week. The concern is that declining yields indicate the anticipation of slowing global growth.
- Minutes of the US Federal Reserve’s June meeting were released on Wednesday. The Minutes appeared to show division among officials with some anticipating the criteria to begin tapering the asset purchase program would be met earlier than originally expected.
- Our Breadth Indicator stayed negative but our Momentum Indicator ticked up again.
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This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’