Please see below the latest market update which was published by Invesco today (06/07/2020):
The two-way pull in financial markets between improving economic data and concerns over a re-escalation in new virus cases continued last week. Unlike the previous week it was the former which won out this time, on the back of the ISM Manufacturing and Non-Farm Payrolls comfortably beating expectations in the US and final PMIs elsewhere pointing to a robust recovery. This was despite daily new virus cases hitting their highest level since the start of the pandemic, with the US and Latin America at the forefront of this increase.
Risk assets rose across the board. Global equity markets had their strongest week since early June, with the US, the Communication Services and Consumer Discretionary sectors, and Growth and Momentum factors leading the way. Japan, the Consumer Staples and Energy sectors and the Value factor were the main laggards. Credit outperformed government bonds, commodities made further gains (Gold hit its highest level since October 2012) and the US$ weakened.
In the UK, FTSE All Share was marginally higher, held back by the FTSE 100, which was unchanged. Mid and small caps performed slightly better. Moves in fixed interest were limited too, with HY ahead of IG and both outperforming Gilts. £ gained against the US$.
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Please keep safe and healthy.
Carl Mitchell – Dip PFS
IFA and Paraplanner
06/07/2020