In view of COVID-19, Investwhizz has decided to provide key COVID-19 confirmed case information along with the technical charts of key markets indices (US, UK, SG, CN, HK, JP, AU, TW & IN) in a Single Page below for your easy reference.
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Market updates 5th Jul 2020:
Overview: Markets remain caught between the positive sentiment stemming from the data optimism and the caution still transpiring on the back of rising Covid-19 case. Looking ahead, a relatively quiet week lies ahead after the series of Chinese PMIs and US jobs report release, but the data watch continues as the market await fresh impetus.
- Covid-19 infection growth remains the single biggest dampener for market sentiment as investors continue to ponder the chance of a V-shaped recovery. This week reports suggesting record daily cases for US states such as Florida occupied headlines while Australia and Japan had also noted fresh hotspots for Covid-19 spread. The watch continues with expectations that this rise may not be quelled so quickly moving into July.
- Reopening efforts meanwhile remain underway with UK expected to reopen pubs from Saturday, July 4, along other non-essential services such as restaurants, hotels, cinemas that were previously shut. PM Boris Johnson nevertheless warned of potential return of restriction should the pandemic runs out of control again. UK market one to watch, though the broader Covid-19 conditions suggesting caution could be retained.
- US data to track in the coming week will be few and far between though watching the ISM non-manufacturing on Monday with the return of the US market from the long weekend. High frequency jobless claims due Thursday will also be key for the US market to watch following tightened restrictions in certain states into end June.
China’s June inflation reading will be due Thursday, expecting the factory gate deflation conditions to continue. CPI is expected to stay little changed at 2.5%. Q2 GDP, retail sales and industrial production will be ones to note in the following week.
- Australia’s RBA meeting decision will be due Tuesday, July 7, with no change expected for monetary policy seeing the limit here for interest rates without any intention by the central bank to head into negative territory. AUD/USD largely trading to the tune of the macro picture.
- Bank Negara Malaysia is expected to cut overnight policy rate by 25 basis points to 1.75% in their Tuesday, July 7, meeting to further shore up support for the Malaysia economy amid the dire economic outlook. This could be the last seen in a long while but would join the other EM Asia central banks to continue providing support in Q3.
- Advance Q2 GDP for Singapore is expected in the coming week with extensive decline expected according to Bloomberg consensus at -10.0%. This will be a first look for Asia economies, one for Asia markets to track. Singapore Press Holdings will also be releasing quarterly earnings on Wednesday, July 8, one for the local bourse.
Do stay safe, stay vigilant & stay healthy!