Anzo Capital
Anzo Capital Representative
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Weekly Market Review by Anzo Capital
For the week of 27 Jul 2020
Worst Ever Result For The US
The headline event of the week was U.S. GDP which recorded its worst ever quarter-on-quarter decline; plunging 32.9%, which was only slightly better than forecast. Clearly concerned, the Fed announced an extension of its enhanced lending facility which was due to end in September. The stimulus will continue until the end of the year, as the Fed aims to provide some certainty of support by way of increased credit facilities to households, businesses as well as state and local governments. Governor Powell reiterated the importance of the path of the pandemic in defining the recovery for the economy. Key metrics such as consumer spending and employment have seen initial recoveries curtailed by secondary spread. Labour markets and normal inflation may take several years to return to pre-Covid levels, as seen with yet another week of rising unemployment claims to 1.434 million for the week ending 25th July.
The Manufacturing sector in China saw another month of contraction to 51.1 points in July, up from 50.9 in June. The growth represents the highest reading since March. Climbing exports from other Asian nations, such as South Korean and Japan, contributed to the rise. Many market commentators claim that China is ‘not out of the woods’ yet, and that the increase in output is due to demand for pandemic-related products and rising activity as a result of the lifting of lockdown restrictions.
Stay informed with our real time comprehensive market analysis reports and financial news here.
For the week of 27 Jul 2020
Worst Ever Result For The US
The headline event of the week was U.S. GDP which recorded its worst ever quarter-on-quarter decline; plunging 32.9%, which was only slightly better than forecast. Clearly concerned, the Fed announced an extension of its enhanced lending facility which was due to end in September. The stimulus will continue until the end of the year, as the Fed aims to provide some certainty of support by way of increased credit facilities to households, businesses as well as state and local governments. Governor Powell reiterated the importance of the path of the pandemic in defining the recovery for the economy. Key metrics such as consumer spending and employment have seen initial recoveries curtailed by secondary spread. Labour markets and normal inflation may take several years to return to pre-Covid levels, as seen with yet another week of rising unemployment claims to 1.434 million for the week ending 25th July.
The Manufacturing sector in China saw another month of contraction to 51.1 points in July, up from 50.9 in June. The growth represents the highest reading since March. Climbing exports from other Asian nations, such as South Korean and Japan, contributed to the rise. Many market commentators claim that China is ‘not out of the woods’ yet, and that the increase in output is due to demand for pandemic-related products and rising activity as a result of the lifting of lockdown restrictions.
Stay informed with our real time comprehensive market analysis reports and financial news here.