Europe Cautiously Higher As Global Recovery Gathers Pace
Fiona Cincotta July 3, 2020 2:25 PM
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.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.