Archives of “August 12, 2020” day

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UK’s Sunak: There will be many more job losses in the coming months

  
Analysis, Economy

Comments by UK finance minister, Rishi Sunak, on the latest GDP report

  • UK economy is now in ‘hard times’, the figures today confirm that
  • Hundreds of thousands of people have already lost their jobs
  • Sadly, many more will in the coming months
The June monthly report was better-than-expected but it mainly just reaffirms sentiment that the economy is picking up further amid the easing of lockdown restrictions.
But as mentioned before, the government furlough program is still masking a lot of the underlying weakness in the economy for the time being.
As such, the outlook – especially in the latter stages of Q3 and Q4 – remains uncertain as there may be a bigger hit to the labour market, in turn the economy, moving forward.
Cable is now up to 1.3050 from around 1.3030 prior to the release of the figures but I don’t see this as being a material game changer for the pound. The dollar side of the equation still holds all the cards in trading at the moment.

Nikkei 225 closes higher by 0.41% at 22,843.96

  
Analysis, Global Indices

A mixed session for Asian equities but mostly lower

Nikkei 12-08
The decline in tech stocks in the US overnight is weighing on sentiment today, though Japanese exporter stocks are benefiting from a weaker yen. Chinese equities are the ones leading losses today, with the Shanghai Composite seen down 1.7% currently.

 

The rout in precious metals is also part of the reason weighing on the risk mood with stimulus talks in Congress facing yet another stalemate.
In the currencies space, the dollar is keeping firmer as such with EUR/USD down to 1.1720 and AUD/USD weighed lower at 0.7110-20 levels at the moment.

HK press – Chinese military told not to fire first shot in stand-off with US forces

  
  Analysis

A report overnight in the South China Morning Post that China’s military forces have been ordered not to fire first in confrontations with the US ….   is good news … I guess:

Says the Post:
  • Sources say that troops have been given orders not to escalate situation as both sides step up their activities in the disputed waters
  • Beijing said to be keen to cool the ‘tense and dangerous situation’ and agreed to a conversation between defence ministers after initially snubbing the request
Link to the Post is here for more, may be gated
Let’s hope a mistake is not made.
A report overnight in the South China Morning Post that China's military forces have been ordered not to fire first in confrontations with the US ….   is good news … I guess:

Dow, S&P 500 see 7-day winning streaks

  
Analysis, US Market

The Dow Jones Industrial Average US:DJIA finished with a loss of 104.53 points or 0.4%, at 27,686.91. The blue-chip gauge was up more than 300 points at its session high. The S&P 500 US:SPX ended 26.78 points lower, a loss of 0.8%, at 3,333.69. The Dow and the S&P 500 both snapped seven-day winning streaks. The tech-heavy Nasdaq Composite US:COMP dropped 185.53 points, or 1.7%, closing at 10,782.82.

The Russell 2000 index US:RUT of small-capitalization companies gave up 9.57 points, or 0.6%, ending at 1,575.10.

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