Weekly Market Insight

Latest Economic & Market Update 23rd June 2020

23rd June 2020

Good afternoon, it is 23rd June 2020 and here is your economic and market update from BlackBee. 

Today we focus on:

  • Tech stocks lead broad US indices to a day of gains as investors move into companies that benefit from “work from home”.
  • UK to ease restrictions and are set to reopen pubs and restaurants on 4 July.
  • Trump extends restrictions on immigration to put American jobs first.
  • We had 4 products mature in the past 24 hours, bringing the average gross return for products in June 2020 to 7.6%. See table below for more details.

Recently investors have been torn on the direction of the economy as they weigh positive economic data and further stimulus against growing concerns over the increasing number of coronavirus cases. Broad indices such as the Dow Jones and S&P500 have been trading sideways as a result. Monday’s trading saw tech lead the way as investors moved into companies that would benefit from a prolonged “work from home” period. The Nasdaq closed up 1.1%. Gold nearly reached a 12 year high, hitting $1,754 an ounce on Monday.

Boris Johnson is set to ease lockdown rules despite warnings from medical experts. Among businesses set to reopen in the UK on 4th July are pubs, restaurants and hotels, as the UK attempt to give the economy a much-needed boost. The two metre social distancing rule is also set to be eased to 1 metre. Despite the number of cases down from peaks in March, there is no vaccine yet in place and the easing of restrictions could be seen as too soon.

In April, President Trump signed an order that put a range of restrictions on immigration into the US. The range of restrictions has now been extended as officials argue that the US economy is lining up to have a strong period of growth, and they want to ensure that Americans can get jobs first. The range of restrictions include suspending “guest worker” visas. The move has come under criticism as many business leaders argue that it will reduce US competitiveness and hurt the rate of growth as companies will not have access to international talent.

Best & Worst Performers of Large Cap Stocks on Monday
Click the image to enlarge

Recent maturities

Global Market Update
(as at close of markets 22/06/2020)