Please see below for Blackfinch Asset Management Monday Market Update – received today 10/08/2020.
Blackfinch Asset Management – Monday Market Update
In the ever changing world that we live in, we recognise the importance of regular and current communication. This weekly news update provides you with a short summary of events around the world which we hope you will find useful.
- The UK Manufacturing Purchasing Managers’ Index (PMI) for July was revised down slightly to 53.3 from initial estimates, with numbers supported by an increasing domestic demand. The survey of members also showed increasing confidence, with 62% expecting production to be higher in 12 months’ time, whilst only 12% forecast a contraction.
- The latest Services PMI number came in strongly at 56.5, up from 47.1 in June, moving back in to expansion territory.
- The Bank of England keep interest rates on hold at 0.1%, commenting that they expect the economy will shrink by a fifth and unemployment will double by the end of the year as the furlough scheme unwinds.
- Tensions between the US and China continue to escalate as President Trump announces a US ban on video-sharing, social networking service TikTok and multi-purpose messaging service WeChat.
- The US jobs market appears to stall, with private payrolls adding only 167,000 jobs in July, against expectations of 1mln new jobs.
- Weekly jobless numbers are, however, stronger than expected with first-time jobless claims falling by 249,000 to 1.2mln, ahead of expectations of over 1.4mln. Overall unemployment numbers also fell to 10.2% from 11.1% in June.
- China PMI is reported at 52.8, ahead of consensus and further support for the existence of a strong economic recovery.
- China’s exports were up 7.2% year-on-year after rising just 0.5% in June, with support from the textiles and electronics industries, not simply medical supplies which had dominated export numbers recently.
- A rapid saliva-based COVID-19 antigen test in development by Avacta Group and Cytiva will receive clinical validation testing by the Liverpool School of Tropical Medicine.
Another useful article from Blackfinch Asset Management highlighting key events from around the world.
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