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Please see the below market update received from Blackfinch Asset Management earlier today:

UK COMMENTARY

  • Tensions between the UK and China continue to rise over Huawei’s ban from the UK’s 5G network and the suspension of the Hong Kong extradition treaty.
  • The IHS Markit Household Finance Index (HFI) for July rose to 41.5 from 40.7 in June. However, 31% of the survey’s respondents said their jobs were less secure than before the pandemic hit the UK.
  • Data from Rightmove suggests that the average price of a house in the UK has risen to £320,265, an increase of 2.4% since March.
  • Boris Johnson’s self-imposed July Brexit deadline looms, with the potential for an agreement seeming unlikely.
  • The CBI Industrial Trends Survey for July showed the total orders balance recovered to -46 from -58 in June. Economists had, however, expected a stronger recovery to -38.
  • Retail sales show a 13.9% month-on-month increase in June, following on from May’s 12.9% increase.
  • The IHS Markit/CIPS Flash UK Composite Purchasing Managers Index (PMI) for July rose to 57.1 from June’s 47.7.

US COMMENTARY

  • COVID-19 case numbers continue to rise, however weekly numbers to the 20th July show that the rate of increase has slowed in 36 states over the previous week.
  • US government orders the closure of the Chinese consulate in Houston, raising further questions around ongoing tensions between the countries. China retaliates by ordering the closure of the US consulate in Chengdu.
  • Donald Trump admits that the COVID-19 pandemic is likely to get worse before it improves.
  • US home sales show their biggest monthly rise on record, increasing by 21% in June, albeit the recovery was slightly lower than expected.
  • US jobless claims show their first increase since late March, rising by 109,000 to 1.42mln.
  • US Secretary of State Mike Pompeo accuses China of being “increasingly authoritarian at home, and more aggressive in its hostility to freedom everywhere else”.

EUROPE COMMENTARY

  • European leaders reach agreement on a €750bn pandemic recovery fund consisting of both loans and grants.

COVID-19 COMMENTARY

  • UK based small-cap drug developer Synairgen has potentially discovered a life-saving treatment for acute cases of COVID-19. Results from a recent trial ‘could signal a major breakthrough in the treatment of hospitalised patients’.
  • The vaccine being developed by Oxford University and Astrazeneca continues to provide positive and safe results in trials.

This update provides you with a short summary of events from around the world over the past week.

Please check back for our regular market updates from a range of providers.

Andrew Lloyd

27th July 2020