Away from today’s announcement and lets take a look at what has been driving markets over the last week…
Before the 4th July Independence Day celebration in the US, there was some strong US employment data released which showed that the largest economy is starting to rebound from its lows. The US unemployment rate has fallen from its recent peak of 14.7% to 11.1%, this is despite the number of Coronavirus cases continuing to increase.
Asian markets started the week very strongly, which has had a knock-on impact on global equity markets.
This was principally being driven from Chinese equity indices which witnessed large gains as state media stated that a healthy stock bull market was more important than ever post the pandemic. This was a front-page editorial for the Securities Times and suggests that Beijing will continue to act to support the equity market through regulation as well as fiscal and monetary policy. With risk assets more finely poised at the moment given what is happening in the US, government and central bank support is of growing importance.
Chief Investment Officer
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