U.S. Indices rise as Jobless claims increase
After reaching a record of 6.6 million in March, Initial Jobless Claims have become one of the key weekly indicators in deciphering the impact of COVID-19 on the US economy.
US Initial Jobless Claims which are for state unemployment benefits, rose by 4,000 in the last week to 870,000 vs 840,000 expected. This is in comparison to last week’s figures which came in at 866,000.
Although numbers were worse than expected the S&P 500 managed to shake off yesterday’s losses and climbed 0.75% as of writing. USD also weakened against the likes of CAD, falling to 1.3358, after starting the day at 1.3418.
UK Chancellors new Job scheme fails to prevent FTSE 100 drop
With the UK’s furlough scheme set to expire at the end of next month, many were hoping that Chancellor Rishi Sunak would extend the job retention programme, however that did not happen.
It was instead confirmed that a new scheme would take its place from November. The aim will be to help businesses employ workers on shorter hours. The Chancellor went on to warn that he could not save every business or job.
He stated that, “The government will directly support the wages of people in work, giving businesses who face depressed demand the option of keeping employees in a job on shorter hours, rather than making them redundant“.
The FTSE100 was down 1.30% on the news, with British cinema chain Cineworld falling 13.7%.
EU plans to regulate Cryptocurrencies
As the EU General Council Meeting commenced today, it was reported that the European Commission will put forward plans to regulate crypto-assets. Which would be the commissions first ever attempt to regulate Crypto markets.
In an address discussing the plans, European Commission Executive Vice President Valdis Dombrovskis stated that one of the aims of the new legislation is for the EU to reduce “market fragmentation” in this space.
BTCUSD climbed by over $300 on the news.
Quote of the day – “In investing, what is comfortable is rarely profitable.”Robert Arnott
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Senior Market Analyst