Global Stocks Poised to Cap Best Week in a Month

July 5, 2020
Scott Kingsley

Overnight Asia

US and European stock futures were flat on Friday, with global stocks poised to cap their best week in a month as improving economic data provided solace against an acceleration in infections in the US.

Contracts on the S&P 500 were little changed after the Index rose in the wake of a stronger than anticipated US jobs report. Manufacturing gauges from the US and China also offered encouraging signs this week, against discouraging signs for the immediate outlook thanks to record numbers of new Coronavirus cases in several American states. Crude oil dipped Friday, while Asian stocks rose. The Dollar was flat, headed for a weekly drop.

Treasury futures were steady, with American cash equity and bond markets shut Friday for the July 4 long weekend. Gold is on course for a fourth week of gains, sitting just below $1,800 an ounce. The MSCI All Country World Index headed for an advance of more than 3% on the week.

Investors cheered data showing US payrolls rose by 4.8 million in June after an upwardly revised 2.7 million gain in the prior month. Still, Florida reported that infections and hospitalisations jumped the most yet, and Houston had a surge in intensive-care patients.

The US labour market made greater progress than expected last month digging out of a deep hole, yet, optimism over the rebound was tempered by stubbornly high layoffs and a resurgent Coronavirus outbreak across the country. President Donald Trump still said the report shows the economy is “roaring back.”

Elsewhere, oil came back from its highest level in almost four months.

These are some of the main moves in markets:


  • Futures on the S&P 500 were little changed as of 7.07 am in London. The Index gained 0.50% on Thursday
  • Euro Stoxx 50 futures were also little changed
  • MSCI Asia Pacific Index rose 0.80%


  • The Yen was flat at 107.50 per Dollar
  • The offshore Yuan traded at 7.0663 per Dollar
  • The Euro bought $1.1236, little changed


  • The Yield on 10-year Treasuries ended Thursday down one basis point at 0.67%
  • Australia’s 10-year Yield dipped to 0.90% on Friday


  • West Texas Intermediate Crude slid 1.00% to $40.26 a barrel
  • Gold was at $1,774 an ounce, little changed

US Market Wrap

US equities gained ground Thursday as a rebounding labour market, evidenced in higher June nonfarm payrolls, offset continued concern over a spreading wave of Covid-19.


  • S&P 500 up 0.50%
  • Dow Jones Industrial Average added 0.40%
  • Nasdaq Composite gained 0.50%
  • Russell 2000 added 0.30%
  • Nine of 11 main S&P 500 sectors closed higher
  • Materials up 1.90%
  • Real estate down 0.30%
  • 10-year Treasury Yield at 0.67% vs 0.68% Wednesday
  • Bloomberg Dollar Spot down 0.07%


  • Virus Update: US virus cases saw the biggest increase since May 9 as Florida’s infections and hospitalisations jumped by the most ever. The Coronavirus may be mutating in a way that may make it easier to spread, said Anthony Fauci, the top US infectious disease researcher
  • With a resurgence of the Coronavirus threatening a nascent rebound of the US economy, the White House and Congress are under increased pressure to agree on another round of fiscal stimulus
  • The US Senate gave final approval to legislation that would impose sanctions on Chinese officials cracking down on dissent in Hong Kong. The bill heads to President Donald Trump for his signature or veto


  • The US labour market made more progress than expected last month, yet, optimism over the rebound was tempered by stubbornly high layoffs and a resurgent Coronavirus outbreak across the country
  • Boeing Co. hasn’t told employees, but the company is pulling the plug on its hulking 747 jumbo jet, ending a half-century run for the twin-aisle pioneer

On Monday:

  • June Final Markit US Services PMI 9.45 am
  • June ISM Non-Mfg Index 10 am

Source: Sanlam Private Wealth

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