INSIGHTMOTORSPORTCONTACT
In our weekly Market Monday insights, Prosperity Investment Management examines the latest developments across the globe's biggest financial markets - providing you with all the latest information you need to know.
A sharp rise in coronavirus infections across Europe has cast doubt over the continent’s economic recovery, as some countries prepare to reintroduce measures.
Attributed to the highly transmissible Delta variant, ministers in France warn that the country could face a fourth wave before the end of the month. Cases in Spain have also soared, forcing some regions to reimpose strict controls to curb the spread of the virus. Meanwhile, despite recording cases in excess of 30,000, officials in the UK look set to continue with the country’s planned removal of restrictions on July 19th as Health Secretary Sajid Javid claims vaccinations have reduced the risk of contagion and serious illness.
In the US, the major benchmarks closed mixed with large-caps and growth stocks outperforming for the second consecutive week. Within the S&P 500 Index, the interest rate-sensitive real estate sector performed best as longer-term Treasury yields decreased sharply. Energy stocks fared worst on concerns that disagreements among major oil producers would result in some violating output restrictions. Weakness among media firms also weighed on the communication services sector.
Finally, there’s fresh optimism of a strong economic recovery in Japan despite the government placing Tokyo under another state of emergency as a result of high coronavirus infection rates. It also means the upcoming Olympic Games will be held behind closed doors. Bank of Japan (BoJ) Governor Haruhiko Kuroda reiterated that the central bank is keeping a close eye on the economic impact of the pandemic and won’t hesitate to take additional monetary easing steps as needed. The BoJ will focus on maintaining a range of pandemic-relief measures that aim to channel cash to smaller firms hit by state of emergency curbs via commercial banks.
