Overseas Headlines – July 1, 2020

United States:

U.S. Stock Futures Fluctuate as New Quarter Starts: Markets Wrap

“U.S. equity futures fluctuated as investors mulled downbeat economic data and simmering tensions over China’s sweeping new security law in Hong Kong. Contracts on the three main American equity gauges were little changed after figures showed U.S. companies added fewer jobs than expected in June. The futures slumped to session lows earlier after the U.K.’s foreign secretary said China’s legislation constitutes a “clear violation” of the autonomy of Hong Kong. Prime Minister Boris Johnson said he will allow almost three million Hong Kong citizens to move to the U.K.”



BOE’s Haskel Sees Activity Returning Faster Than Expected

“The U.K. economy is seeing a “glimmer of hope” with activity returning faster than anticipated, according to Bank of England policy maker Jonathan Haskel. Employment remains a risk, with much uncertainty around the number of furloughed workers that will be able to return to jobs, he added. If the U.K. were to experience a second wave of the virus, policy makers would respond, he added.”



Asia’s Factories May Be Over Worst as China Demand Picks Up

“Asia’s factory managers saw glimmers of hope in June, with the region’s purchasing managers indexes turning up across the board as demand from China picked up. PMIs for Japan, South Korea, and Taiwan — the region’s manufacturing powerhouses — improved slightly, but stayed below 50, the dividing line between contraction and expansion. Factory output in Vietnam and Malaysia grew for the first time since January and December, before the virus spread in the region. Indonesia’s index surged almost 11 points, the biggest increase since at least 2011, while remaining below 50, and India’s followed a similar trajectory, rising sharply from May but remaining in contraction for a third straight month.”



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