Stocks Head For Weekly Gain As Fears Ease & Retail Sales Smash Forecasts
Fiona Cincotta June 19, 2020 2:41 AM
European bourses are heading for a cautiously higher start after a mixed close on Wall Street in low volumes. Shares drifted in the Asian session. European markets are still heading for a weekly gain despite concerns of a second wave of coronavirus, which dragged the markets lower last week, still lingering.
UK retail sales smash expectations
UK retail sales surged +12% in May compared with the previous month, smashing expectations of a more conservative +5.7% increase, as lockdown measures started to ease. The jump in sales goes some way to making up from the record -18.1% decline in sales the previous month.
Given that lockdown measures didn’t start to ease until the second half of May, these figures are certainly encouraging. However, there will almost certainly be a strong element of pent up demand in the record-breaking data. With unemployment low and the labour market supported by the government’s furlough scheme, there is a good chance that retail sales could remain buoyed for the coming month. What will be interesting to see is whether retail sales manage to remain positive when the government starts withdrawing from the furlough scheme.
Oil extends gains on strong supply / demand fundamentals
Oil prices are on the rise, building on gains from the previous session, as demand continued to show signs of improvement whilst OPEC members also pledged to meet their supply cuts commitments. With the expectation growing that overproduction in May, will be compensated for over the coming months with lower production, the net effect will be positive for the price of oil. Iraq and Kazakhstan have revealed plans to compensate with lower production, investors are optimistic that they won’t be alone. WIT is trading +1.3% in early trade as it looks to target $40.00.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.