FTSE 100 rallies as UK Retail sales beats estimates.
After a somewhat quiet week in which many markets consolidated, Friday provided markets a spark as we head into the penultimate week of June.
In the UK, retail sales increased by 12% month-on-month in May. Which is almost double the estimated 6.3% increase, and a huge swing from April’s 18% contraction.
This comes as like many other nations around the world, the UK slowly lifted lockdown measures.
The FTSE 100 rose to as high as 6,319 on the initial news.
Nasdaq neared record high, prior to resistance holding
Last week saw U.S. stock indices experience huge falls, as fears grew of a new surge of COVID-19 cases. Those fears saw markets consolidate for the majority of this week, until today.
Early trading on Friday saw the Nasdaq climb to as high as 10,123 as it was reported that China was planning to accelerate purchases of American farm goods to comply with the phase one trade deal with the U.S.
This run saw the index reach the high, which many now see as being a resistance level.
Since reaching the high of the day, the Nasdaq has since sold off, and now trades below 10,000.
EU no closer to final stimulus agreement
Since agreeing to a COVID-19 rescue package in April, EU leaders have yet to finalize the deal and have it agreed by all member nations.
On Friday, EU leaders agreed that urgent action was needed to haul their coronavirus-hit economies out of the deepest recession since World War II.
As a result they arranged a formal in person meeting in mid-July to negotiate a long-term budget and economic rescue package worth 1.85 trillion euros. It is seen as an imperative for the EU to get this deal across the line.
“Frankly, I don’t see markets; I see risks, rewards, and money.”Larry Hite
Gold: Gold broke the $1,730 resistance on Friday, going to as high as $1,744 . This came as the metal was mainly in consolidation this week.
Nasdaq: After nearing a new record high on Friday, the tech heavy Nasdaq sold off at the resistance level of 10,123.41.