US Consumer Sentiment declines as Covid-19 cases surge
On July 31, 2020 by Thomas BelaynehThe University of Michigan’s monthly survey of consumer confidence revealed lower confidence among consumers in July, as the headline sentiment index declined from 78.1 in June to 72.5 in July. The last four months has seen stubbornly low levels in the headline sentiment index for which the average has been 73.7 – 25% lower than
US initial jobless claims holds firm at 1.4m as continuing claims reverses higher to 17m
On July 30, 2020 by Thomas BelaynehAlthough initial US jobless claims were better than the median forecast of 1.45m, this week’s print of 1,434,000 represented an increase of 12,000 on last week’s revised figure. The message is clear. The US economic recovery is sputtering and stalling and needs an injection of stimulus soon. The top three largest rises in initial claims
US transportation sector drives new orders for durable goods 7.3% higher
On July 28, 2020 by Thomas BelaynehNew orders for durable goods rose 7.3% to $206.9bn in June, driven by a surge in new orders for transportation equipment which increased 20% to $55.3bn. Excluding transportation, however, revealed an increase of only 3.3%, which was lower than May’s figure of 3.6%. New orders for capital goods disappointed, declining by 16.4% to $52.2bn, despite
FTSE 100 closes lower as airlines are buffeted by quarantine rules on arrivals from Spain
On July 27, 2020 by Thomas BelaynehThe FTSE 100 closed lower 0.31% lower today after the UK government abruptly imposed mandatory quarantine on travellers arriving in the UK from Spain following a spike in Covid-19 cases. While the government is not advising holidaymakers to cut their holidays short, they require that on return travellers provide their ‘journey and contact details’ as
UK Flash PMIs better-than-expected as all sectors return to growth although hiring remains weak
On July 24, 2020 by Thomas BelaynehFlash estimates released this morning by IHS Markit revealed forecast-beating results across both manufacturing and services in the UK. The Manufacturing PMI rose to 53.6 in July from 50.1 in June, beating expectations for 52. The Services PMI rose to 56.6 in July from 47.1 in June, beating expectations for 51.1, and marking the first
Labour market recovery progresses as continuing jobless claims collapses by over 1m
On July 23, 2020 by Thomas BelaynehEconomists and analysts had been expecting this week’s initial jobless claims figure to remain the same as last week’s 1.3m, however, today’s jump to 1,416,000 missed by a wide margin. The initial claims data adds to pressure on legislators to pass a new stimulus package ahead of the summer recess, so as to ensure the
US house prices fell month-on-month for the first time in 9 years
On July 22, 2020 by Thomas BelaynehData released today by the Federal Housing Finance Agency showed house prices fell 0.3% from April to May, as Covid-19 shutdowns and stay-at-home orders made selling homes logistically difficult for homeowners. Consensus expectations were for a 0.3% growth in house prices. Today’s announcement marks the first time the index has recorded a month-on-month contraction since
S&P 500 closes 0.84% higher as positive vaccine news emerges from Oxford
On July 20, 2020 by Thomas BelaynehThe S&P 500 closed 0.84% higher, as investors reacted positively to news that a Covid-19 vaccine being developed by a team at the University of Oxford (in partnership with AstraZeneca)”generated robust immune responses”. The results from the trial, which is currently at phase one/two, showed that nearly all of the 1,077 adult participants (aged 18-55)
Goldman Sachs shares surge after reporting strong 2Q earnings
On July 17, 2020 by Mathias BelaynehThis Wednesday, Goldman Sachs announced second-quarter earnings that crushed analysts’ expectations and displayed one of their best quarters in years. The investment bank generated $2.42 billion in profit, or $6.26 a share beating analysts’ estimates of $3.96 per share. In a statement, CEO David Solomon stated “the turbulence we have seen in recent months only