U.S. Consumer Confidence Highest Since 2016

Last Friday’s NFP report highlighted a strong U.S. jobs number for the month of May. A week later we see more positive news coming from the U.S. as consumer sentiment reaches its highest level in 4 years.

U.S. consumer sentiment climbed in early June by the most since 2016 as more states began to reopen their economies and employers restored jobs.

The news has brought a much needed boost in optimism that the reopening of the U.S. economy will restore jobs and increase consumer spending to the levels required for the U.S. to climb out of a deep recession.

UK Economy Shrinks by 25%

Today it was reported that the UK economy shrank by over 25% through March and April many non-essential businesses were closed due to the coronavirus lockdown. 

After already shrinking by 6% in March, the economy continued this in April with a contraction of 20.4% . This drop in size now sees the British economy at the same size it was in 2002.

In reaction to this, Andrew Bailey of the BoE said the record fall of 20% in Britain’s GDP in April,  was close to the BoE’s expectations for the month. 

U.S. Stocks Rebound from Yesterday’s Losses

 After the biggest one day drop since March, U.S. stock indices rallied on Friday after a surge in consumer confidence.

The  S&P 500 rose by as much as about 3% earlier in the day and is now about 10.8% from its record high .

Notable gainers included Boeing which jumped around 5.2%, United Airlines  and  American Airlines Group which  jumped between 11% and 12.5% respectively, leading today’s gains on the S&P 500.

Biggest Bull

FTSE 100: The FTSE 100 rallied on Friday, as news of the British economy contracting by 25% sent GBP down.

“Frankly, I don’t see markets; I see risks, rewards, and money.”

Larry Hite

Biggest Bear

GBPUSD

After ending its 10 day rally on Thursday, cable continued its descent on Friday. The drop has seen the pair momentarily stop at the support level of 1.251.