Panic sparked last night by US comments about the China trade deal being over was quickly quelled with a rebuttal and reinforced by further positive noises from President Trump himself. In a signal in what could have been, US stock futures briefly lost 400 points.
By the time London started trading, panic gave way to fresh optimism prompted by very encouraging economic numbers from the Eurozone showing that both the manufacturing and the services sector have jumped back to a four-month high. The numbers were still below the 50 mark, indicating still deteriorating conditions, but the two sectors have dug themselves out from the corona-induced slump much quicker than analysts had hoped.
Social distancing to shorten in July
The reopening of the UK will pick up pace at the start of July when cinemas, galleries and museums will open their doors, alongside pubs, hotels and hairdressers. Later today the Prime Minister is expected to announce the reduction of the two-metre social-distancing rule which has made it difficult for a number of businesses to operate. The contentious two-week quarantine is also expected to be lifted for travellers arriving from a small number of European countries.
Melrose Industries and Rolls Royce, both with a strong exposure to the airline sector, are among the top gainers of the FTSE. Oil majors are also on the rise after Brent crude prices increased $43.
US tech sector and work visas
US tech companies are in an uproar after President Trump signed an executive order banning all work visas, the type of visa Silicon Valley uses to bring in skilled foreign employees. Amazon, Facebook and Google have already voiced their disagreement, fearing that they could end up with a brain drain once the order takes effect.
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