Morning Minutes 7/6/2020

Morning Minutes

Strong Start to the Week for Stocks

July 6, 2020

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

US markets return to trading today from a long weekend, but overseas investors have already kicked off the new week in a big way. Shanghai soared 5.8% overnight, while Hong Kong rallied 3.8% in Asia Pacific trading, while in Europe this morning, the Dax and the FTSE are both up 1.7%.

Although coronavirus case counts continued to climb in several countries over the weekend, investors remain focused on economies reopening. UK construction PMI climbed back up above 50 into expansion territory (55.3 vs street 47.0 and previous 28.9), and Eurozone retail sales bounced back more strongly than expected (17.8% vs street 15.0% and previous -12.1%).

It’s a quiet day for corporate news. Although earnings season is not scheduled to get going until next week, we could see preannouncements and confessions this week from some companies and/or sectors. The main economic event this week is Canadian employment on Friday.

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