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Please see below for the latest Blackfinch Group Monday Market Update received by us today 30/11/2020:

UK COMMENTARY

  • Prime Minister Boris Johnson announced an end to the second national lockdown, with the country moving to a three-tier system after 2nd December. Additional rules governing the Christmas period were also announced, with three households allowed to form a ‘bubble’ between 23rd and 27th December.
  • The Composite UK Purchasing Managers’ Index (PMI) fell to a six-month low of 47.4 in November, from 52.1 in October, indicating a contraction in business activity. The services sector PMI contracted from 51.4 to 45.8, while there was expansion in manufacturing from 53.7 to 55.2.
  • Rishi Sunak announced the Government’s latest spending review. He confirmed that £55bn of COVID-related spending is in place for the next fiscal year, in addition to the £280bn allocated for 2020.
  • The Office for Budget Responsibility released its forecasts, showing its central case. This is where vaccines are widely available from mid-2021, leading to the economy being approximately 3% smaller in 2024/25 than if the pandemic hadn’t happened.

US COMMENTARY

  • The General Services Administration announced that it would begin the formal transition process to the president-elect Joe Biden. This will allow Biden and his team access to both funding and government agency officials. It’s the first sign that a smooth transition of power may take place.
  • Initial jobless claims came in ahead of expectations at a five-week high of 778,000
  • The Federal Reserve meeting minutes from early November showed that policymakers will consider further stimulus via asset purchase mechanisms

ASIA COMMENTARY

  • China’s industrial profits rose for the sixth consecutive month, posting an increase of 28.2% year on year according to the country’s National Bureau of Statistics

COVID-19 COMMENTARY

  • Results from clinical trials of the COVID-19 vaccine in joint development by Astrazeneca and Oxford University showed 70% effectiveness across all dosing regimens tested. One regimen showed efficacy of 90%.

These articles provide concise well-informed views that cover the whole of the market and are useful to maintain your up to date view of the markets globally.

Please keep reading our blogs regularly to give yourself a holistic and up to date view of the markets.

Keep safe and well.

Paul Green

30/11/2020