U.S. Service Sector returns to pre-COVID highs
After this weekend’s 4th of July celebrations in the U.S, Monday saw the celebrations continue as the services sector posted a huge rebound.
The ISM data released today showed that non-manufacturing activity jumped to 57.1 for the month of June.
This is the highest since February and an increase from the 45.4 reading in May.
The U.S. services sector has significantly suffered in recent months due to the uncertainty surrounding the coronavirus. This resulted in a 11 year low of 41.8 in April.
Readings above 50 symbolise growth.
China leads the way as global stock rally
On Monday, China’s Shanghai Composite rallied close to 5.7% to record its biggest one-day move in the past 5 years.
The move seems to have originated from Chinese media talking up hopes of a “significant” economic recovery.
As a result retail investors in China seem to have piled into the equity markets in the hope of such a recovery gaining momentum.
Tesla, which has a growing presence in China saw a 9% increase in its share price.
The Dow was up 1.42%, S&P 500 1.54%, and the NASDAQ 2.32%. The FTSE 100 was up 2.3%.
Buffett’s Berkshire makes first major pandemic deal
After being criticised for “hoarding” cash during the pandemic, Berkshire Hathaway has finally made a deal.
The firm has pulled the trigger on a $4 billion purchase of the natural gas operator Dominion Energy.
This is the first deal made by the Warren Buffett founded company since the pandemic began in March.
Quote of the day: “The market is a device for transferring money from the impatient to the patient.”Warren Buffet
UK100 (Futures): The UK100 rallied big on Monday, gapping up as pubs, restaurants and cafes opened for the first time since lockdown restrictions were put in place in March. Starting the day at 6188, the index rallied to as high as 6307.
USDJPY: After failing to break the 108 level last week, USDJPY continued to fall today, dropping to a low of 107.400.