Analytics

How to start the week: Analytics & Forecasts — 24.08.2020

Fundamental analysis and forecasts for the future


U.S. business activity snapped back to the highest since early 2019 this month. Downbeat economic data that pointed to a stalling of the euro zone recovery hit regional stock markets on Friday.

 

Must Know

U.S. business activity snapped back to the highest since early 2019 this month as companies in both the manufacturing and services sectors saw a resurgence in new orders even as new COVID-19 cases remain stubbornly high across the country, a purchasing managers’ survey showed on Friday.


U.S. home sales rose at a record rate for a second straight month in July, and purchasing managers in both the manufacturing and services sectors report business activity has accelerated at a brisker-than-expected pace this month.


Downbeat economic data that pointed to a stalling of the euro zone recovery hit regional stock markets on Friday, with the pan-European STOXX 600 index marking weekly losses as coronavirus cases rose across the continent.


The Russian rouble fell to multi-month lows on Friday after Moscow said it was ready to help neighboring Belarus resolve its internal political crisis if it is asked for help.

 

A Fundamental View

Gold

Gold will extend its record-setting rally on currency debasement and expectations for further stimulus, according to SkyBridge Capital.

The precious metal surged to a record well above $2,000 an ounce earlier this month — though prices have stumbled since then — as central banks have unleashed vast stimulus to support economies hurt by the coronavirus pandemic. That’s spurred bets that paper currencies will lose their value as money supply jumps.

Euro

Euro zone data pointing to a faltering recovery doused global stock market gains on Friday and saw the euro recoil further from recent peaks.

The loss of momentum came after fresh numbers painting a muted economic outlook, with purchasing managers’ index releases from France and Germany as well as the wider euro zone falling short of expectations.

Hang Seng

Hong Kong stocks climbed on Friday, helped by IT and consumer firms, but posted a marginal weekly drop as uncertainty over Sino-U.S. trade talks weighed on sentiment.

Leading the gains for the day, the Hang Seng IT index and the Hang Seng consumer staples index climbed 1% and 2%, respectively. These gains could continue in the face of new U.S. sanctions

 

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