Europe Points Lower As Second Wave Fears Increase
Fiona Cincotta June 22, 2020 2:15 AM
European bourses are pointing to a weaker start as fears of rising coronavirus cases drag on sentiment.
European bourses are pointing to a weaker start as fears of rising coronavirus cases drag on sentiment. Although low volumes suggest weak conviction.
What is becoming increasingly clear is that any covid-19 recovery will be far from a straight line. Hopes of a V-shaped recovery to be tested further this week as the UK is set to reduce its social distancing rules down to one meter in an attempt to boost the prospects of survival for shops, bars and restaurants as they reopen. Chancellor Rishi Sunak has also hinted towards a reduction in VAT to get the UK spending again.
Whilst localised flare ups in coronavirus cases are likely to happen, the speed and effectiveness of dealing with them will be paramount.
Survey data in focus
Today, the UK economic calendar is fairly empty with CBI business trends in focus. European consumer confidence could also attract some attention. This data should provide a sense of how quickly sentiment is recovering as economies reopen. This is key for a recovery in domestic demand. Expectations are for a slow increase in confidence in June to -15, up from -18.8
Looking ahead a barrage of PMI data from UK, Eurozone and the US will provide further clues as to the health of the economic recovery.
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