Good afternoon, it is August 11th 2020 and here is your economic and market update from BlackBee.
- China responds to US sanctions.
- Mixed trading in reaction to US/China tensions.
- 730,000 jobs lost in UK due to pandemic.
The tit for tat battle between the US and China continued yesterday with tensions on the rise once more. In response to measures from the US on Friday, which imposed sanctions on Chinese and Hong Kong officials over the security laws imposed on Hong Kong, China has enforced a similar measure by sanctioning 11 American lawmakers and foreign policy experts. With both economies trying to deal with the fallout of the pandemic, investors will hope that the tensions between the US and China will not continue to escalate.
Markets were mixed yesterday due to the tensions between the US and China. The S&P500 edged 0.27% higher and the Dow Jones rose 1.3%. The Nasdaq closed in the red, falling -0.39%. In Europe, the Stoxx Europe 600 climbed 0.3% higher. The price of gold fell -0.41% settling at $2,027.34/ oz.
According to the Office of National Statistics, 730,000 jobs have been lost in the UK as a result of the pandemic. These figures were reached using payroll tax and represent a 2.5% fall in employment from March. With the figure rising in July, 7.5% of the workforce (2.7 million people) are now claiming unemployment benefits. The furlough scheme has been vital in protecting jobs during the crisis, providing support for 9.6 million jobs. People working in jobs receiving support are still considered employed. The issue now is that government support for these jobs will be gradually reduced starting this month and ending October. The labour market in the UK, which is already under severe pressure, could see the true effect of the pandemic when the furlough scheme ends. An extension of the furlough scheme may be required to further support the economy and prevent further layoffs.
Best & Worst Performers of Large Cap US Stocks on Monday
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Global Market Update
(as at close of markets 10/08/2020)