Latest Economic & Market Update 10th June 2020
Good afternoon, it is 10th June 2020 and here is your economic and market update from BlackBee. We have new maturities last night, Dynamic Global Equity 3 – Step Down Version, 90% Protected Pharma 2 and Global Food Twin-Win 4. Please see below for more details.
Today we focus on:
- Investors are cautious that rally overestimates economic prospects.
- Figures show that the contraction in retail sales in the UK is easing.
- France supports the aerospace industry as 100,000 jobs at risk.
US stocks pulled back from their rally on Tuesday, as investors worry that the rally in stocks has overestimated economic prospects. The Nasdaq was the only index to close in positive territory, as these worries were felt across Europe too. The Nasdaq briefly rose above 10,000 for the first time before paring some of the gains and closing up +0.95%. Yields on treasuries also fell, continuing the trend in the last few trading sessions indicating a movement to safe-haven assets.
Retail sales contracted -19.1% in the UK in the month of April. New figures show that the rate of contraction eased in May, dropping -5.9%. This reading is the second-largest contraction on record behind April. The easing in the contraction of retail sales is likely to continue as many shops can reopen on 15th June. Many businesses in the UK who have been able to open so far are finding it costly to implement social distancing guidelines and are experiencing reduced footfall.
The aerospace industry in France employs about 300,000 people, directly and indirectly. Bruno Le Maire, the finance minister in France warned that up to 100,000 jobs are at risk in the sector within the next 6 months. This has led France to unveil a €15 billion package to support the sector. Le Maire also stated that some of 1,300 French firms in the sector could face bankruptcy. The injection of funds is the third plan the French government has launched. France has already outlined plans to support the automotive and tourism industries. These sectors are among the most hard-hit due to the lockdown and closure of borders. These plans are also vital to keep funds flowing into these sectors to prevent firms from going under and to avoid firms falling behind international rivals.
Best & Worst Performers of Large Cap Stocks on Tuesday
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Global Market Update
(as at close of markets 09/06/2020)