Gerald Fitzgeralds Market Review 2nd June

LAST WEEK IN 30 SECONDS...

Market momentum pressed ahead last week, with the tech heavy NASDAQ now up 6.2% for 2020 to date. The week saw continued optimism on easing of restrictions arising from the Covid-19 outbreak with the European Commission proposing a €750bn recovery fund to meet the cost of this pandemic. €500bn of this will constitute grants with the remaining amount made up of loans to harder hit member states.

Elsewhere, tensions between the US and China continued, albeit each have their own challenges with US riots and discontent surrounding a new Chinese national security law coming into place in Hong Kong. Global equities in euro terms finished the week up 1.5%.

THIS WEEK IN 30 SECONDS...

With restrictions easing, investors once again focus on economic indicators to understand the magnitude of the challenge ahead for economic recovery. Eurozone unemployment figures are released on Wednesday, with the reciprocal disclosure in the US on Friday where the update is expected to show unemployment beyond 19% of the workforce, a figure not seen since the Great Depression.

Wednesday also sees the release of US factory orders whilst Eurozone retail sales are announced on Thursday, with both releases anticipated to show significant drops in activity.

US GUN MAKER’S SHARE PRICE SHOOTS HIGHER

Fear and uncertainty have propelled US firearm manufacturer Ruger’s share price up over 45% this year. Whilst the initial pandemic triggered a lower share price, Ruger was quick to benefit from US citizens looking for personal protection. The recent civil unrest has seen the gun maker’s share price surge as US citizens reach for their chequebooks to add to their arsenal.