Good morning and welcome to our ongoing coverage of the global economy, financial markets, the eurozone and business.
Joe Biden’s announcement of a bipartisan agreement on a $ 953 billion infrastructure plan, billed as the largest public transportation investment in American history, has boosted the equity markets in the United States and Asia. On Wall Street, the S&P 500 and the Nasdaq closed at new all-time highs of 4,266 and 14,369 respectively.
In Asia, Japan’s Nikkei rose 0.66%, while Hong Kong’s Hang Seng rose 1.4% and the Australian stock market added 0.5%.
Michael Hewson, Chief Market Analyst at CMC Markets UK, says:
Last night’s earnings [on Wall Street] They were helped by the bipartisan deal on a $ 579 billion infrastructure bill, far less than Democrats would have liked, but still a pretty decent addition to all the other stimulus packages seen in the last six. months. The new spending would include money for roads, bridges, railways, and public transportation, all areas that have been deeply neglected over the years. While the deal is welcome, it still faces a high bar to become law given the narrow majority of Democrats on Capitol Hill.
In the wake of last night’s strong endgame in the US, markets here in Europe appear poised to open higher, and travel stocks are likely to be in focus after the government added Malta, Madeira and the Balearic Islands. to the green list, in addition to indicating that it would. Consider removing quarantine rules for fully vaccinated UK residents returning home from amber list countries later in the summer.
UK ministers have relaxed travel restrictions for several tourist spots, adding Malta to the “green list” of countries that do not require quarantine for returning travelers, as well as a handful of Caribbean nations.
Car production in the UK continues to rise but recovery is hampered by global supply shortages, for example of semiconductors, warned the Engine Manufacturers and Traders Society. Some 54,962 vehicles left the factory gates in May, 934% more than in May 2020 forged by Covid when production was cut to 5,314, but still 52.6% in May 2019.
So far this year, UK factories have produced 429,826 cars, 105,063 more than in 2020, but overall production remains down 22.9% in the same five-month period in 2019.
On Germany, consumer confidence has improved more than expected, following a reading of strong business optimism yesterday.
The GfK institute said its consumer confidence index, based on a survey of 2,000 Germans, rose to -0.3 points, the highest level since August and from -6.9 the previous month.
Consumers were much more optimistic about their own personal income situation, as well as the overall economic outlook. Buyers’ expectations for the economy reached a 10-year high, reaching 58.4 points. However, the willingness of Germans to make purchases increased only slightly.
- 9:00 a.m. M. BST: Business and Consumer Confidence in Italy for June
- 11 a. M. BST: Unemployment benefits claims in France for May
- 12pm BST: Bank of England Quarterly Newsletter
- 1.30pm BST: PCE price index
- 3pm BST: Michigan Consumer Sentiment End for June
George is Digismak’s reported cum editor with 13 years of experience in Journalism