UK’s economy grows slower than expected
GDP figures released today showed that the UK economy grew by 2.1% in August, showing the country’s gradual recovery from the coronavirus crisis.
Although the data showed that production grew, it came at a lower rate than markets had initially expected, with analysts forecasting growth of 4.6%, as the British economy reopened this summer.
Despite the slower growth rate, the UK’s FTSE 100 rose to a three-week high on Friday, breaking its recent resistance level of 6,015 in the process.
S&P 500 rallies to 1 month high
The S&P 500 continued its recent streak of gains on Friday leading the benchmark U.S. index to reach its highest level since September 4th.
Rallies came as U.S. Wholesale Inventories increased by 0.4% in August vs markets estimates of 0.5%. Many believe rallies have come as Federal aid talks have resumed.
The Dow Jones was up 0.67%, the S&P 500 gained close to 0.90%, and finally the NASDAQ traded 1.21% higher.
New Job Protection Scheme, as Britain braces for a second lockdown
As coronavirus cases continue to increase in the UK, many workers and employers have already started to brace themselves for potential announcements of a second lockdown.
To get ahead of this uncertainty, UK Chancellor Rishi Sunak laid out new plans for a Job Protection Scheme, which he hopes will help those at risk of unemployment.
The scheme will see employees of UK businesses that are forced to shut by law, receive two-thirds of their wages, paid for by the government. This will commence from November 1st.
Quote of the day – “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”Paul Samuelson
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Senior Market Analyst