Weekly market review June 29 – July 3 2020 | Stock market

June 29, 2020
Weekly market review June 29 – July 3 2020 | Stock market

Stock market

Stock markets are under pressure due to the worsening epidemiological situation in the United States and ongoing tensions between the United States and China. In some states, local authorities decided to reintroduce lockdown restrictions, which will cause additional economic damage. The number of global confirmed cases of coronavirus exceeded 10 million, and the number of deaths exceeded 500 thousand.

The parliament of China voted for the national security law, which caused a flurry of criticism from the United States and other countries. According to the United States, this law limits the autonomy of Hong Kong. In this regard, the United States began the process of depriving Hong Kong of preferential status.

The stock market may be boosted by the adoption of a new package of economic assistance by the US Congress. The Trump administration said that this package could be presented in a few weeks.

Currency market

Last week, the dollar strengthened amid increased demand for safe-haven assets.

New Zealand dollar depreciated after the results of the meeting of the Reserve Bank of New Zealand were announced. The regulator made no changes to monetary policy, however, expressed its willingness to expand monetary stimulus, which put downward pressure on the New Zealand dollar.


The price of oil made a downward correction amid fears of re-introducing lockdown restrictions, which would lead to a drop in oil demand. The price of “black gold” was also pressured by reports that Libya is going to resume oil exports.

The price of gold reached a new 7-year maximum amid increased demand for safe-haven assets.

Main events of the current week

  • On Tuesday, data on Canada’s GDP, US Consumer Confidence Index, and Japanese large manufacturers index will be presented. Fed Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will testify in the US Congress.
  • On Wednesday, manufacturing PMI’s of China, Germany, the UK, and the United States will be published, as well as data on employment change in Germany and the United States. The minutes of the Fed meeting and data on crude oil inventories will be published as well.
  • Statistics on the US labor market will be released on Thursday, including unemployment rate, nonfarm payrolls, and average hourly earnings.
  • On Friday, data on retail sales in Australia and UK services PMI will be presented.

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Categories: Analysis

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