Stocks Head Lower Despite UK Unemployment Rate Holding at 3.9%
Fiona Cincotta July 16, 2020 7:32 AM
European bourses are set to open on the back foot as US – Chinese tensions, in addition to worrying trends surrounding the Chinese consumer, drag on market sentiment. Negativity in the market is overshadowing better than expected Chinese economic growth and better than forecast UK jobs data.
Asian markets traded lower and European bourses are set to open on the back foot as US – Chinese tensions, in addition to worrying trends surrounding the Chinese consumer, drag on market sentiment. Negativity in the market is overshadowing better than expected Chinese economic growth and better than forecast UK jobs data.
For now, Tenreyo’s concerns are not being played out in the labour market. Jobs data continues to defy the reality of the deepest economic downturn in 300 years. Unemployment remained steady at 3.9%, the number of people claiming unemployment benefits actually declined by 28,000 rather than increasing by 250,000 and average earnings excluding bonuses jumped +0.7%.
US retail sales later today will be watched closely. Expectations are for a 5% mom in June, after a 17.7% surge in May. There is a good chance that we are still seeing pent up demand being released here. However, any weakness particularly after China’s data could deeply unsettle investors.
The Euro is trading on the back foot versus the safe haven USD but advancing versus GBP as investors look ahead to the ECB monetary policy announcement. The ECB are not expected to move on policy after increasing the Pandemic Emergency Purchase Programme by a more than expected €600 billion last month and amid tentative signs of economic recovery in the region. We can expect the ECB to return to the familiar wait and see mode.
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.