Europe Cautiously Higher As Global Recovery Gathers Pace
Fiona Cincotta July 3, 2020 7:25 AM
A stellar US jobs report saw Wall Street bound higher with the Nasdaq reaching another all time high and the S&P reaching its highest closing level since early June.
Caution remains despite increasing signs of a strong economic rebound, due to rising US coronavirus cases. The number of new daily cases crossed 50,000 for the first time reaching 51,200 in the last 24 hours a sign that the crisis is spiralling out of control. The economic recovery that was cheered in the previous session could soon be reversed as reopening plans are paused and in some cases rolled back.
Here in the UK preparations are being made for the reopening of the hospitality sector with pubs and restaurants ready to throw open their doors to the public after three months of lock down. Travel bridges are also expected to be announced today coming into effect next week. Whilst these are steps that will hep boost economic activity in the UK there are concerns that the government is moving too quickly.
Today UK service pmi data today is expected to confirm the preliminary reading of 47.3, revealing that the contraction in the sector is slowing.
Pound slips as Brexit talks end early
The Pound is slipping versus the US Dollar after Brexit talks ended a day early. The break down of negotiations shows just how much distance remains between the two sides. Michel Barnier confirmed in a statement that serious divergences remained, however he still believed that a deal could be reached, which has prevented the Pound from falling further. Talks will resume in London next week as planned.
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