skip to Main Content
enquiries@thearmchairtrader.com

Sign up for our Free Daily Digest newsletter: Actionable insight every morning, designed for the self-directed investor. Find out more

The US is seeing record numbers of new covid-19 cases on a daily basis – will it continue to accelerate this week?

US: Coronavirus headlines to dampen investor spirits?

In a week exceedingly light on top tier data, investors may be forced to pay more attention to the coronavirus headlines they have been so desperate to ignore.

Over the last couple of weeks, America’s number of new daily covid-19 cases has grown from the 30,000’s to the 40,000’s to 50,000’s. Yet repeatedly the markets have put their fingers in their ears, instead focusing on things like the strength of June’s nonfarm jobs report or the (early days) positive vaccine news from Pfizer and BioNTech.

Dr Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases and maybe the most prominent member of the White House Coronavirus Task Force, has spoken of what is ‘going to be a very disturbing’ US death toll – which is currently around 130,000 – while warning that daily cases could soon hit a staggering 100,000. And this is more than 3 months into a pandemic.

Florida is almost a microcosm for the US as a whole, the state regularly accounting for a fifth of the overall daily total of new cases, following a lockdown that was a lockdown in name alone.

As mentioned, without anything like a nonfarm jobs report to pull focus – there’s the latest services PMIs on Monday, unemployment claims on Thursday, PPI on Friday, and not much else – investors may have little option but to stare those grim coronavirus figures in the face.

There are, of course, a couple of factors that could ride in white knight-style. Any more upbeat vaccine news from the various labs working on one has shown time and again to be a market-lifter. And there have also been reports Congress is considering a new fiscal spending bill – potentially including stimulus checks and back-to-work bonuses – an update on which could be handy.

UK: Brexit talks

Just like in the US, there’s not a whole lot of data on offer in the UK this week, leaving the FTSE at the mercy of macro-winds. The latest construction PMI arrives on Monday, with the Halifax HPI on Tuesday, and the CB leading index on Friday.

The pound will also be keeping an eye on the Brexit situation, after the most recent round of talks ended in a harmful stalemate.

UK: Stocks to Watch

In terms of the corporate calendar, the highlights are Halfords, JD Sports, Electrocomponents and Reach on Tuesday, and Persimmon, PageGroup and Superdry on Thursday.

Eurozone: Economic data

Over in the Eurozone, there are the region-wide retail sales reading on Monday, the French trade balance number on Tuesday, the latest EU economic forecasts on Wednesday, and the French and Italian industrial production figures on Friday.

This article is brought to you in association with Spreadex. All opinions expressed in this article are from the author and do not necessarily represent the opinions of The Armchair Trader. You can find out more about Spreadex products and services here, or find more articles from Connor Campbell here.

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

Comments

This Post Has One Comment
  1. Superdry results rescheduled 5—8 weeks after July 9th in their May 7th trading statement.

Comments are closed.

Back To Top