Week in Review 7/10/2020

S & P 500 hardly moves on the week, in line with other foreign equity indices. The FTSE 100 is the main exception, ending the week back near June lows.

In the US, initial jobless claims dropped to 1.3 million after stalling at 1.5 million for the last few releases. US debt to GDP levels jumped appreciably in the first quarter. The Broad Dollar index devalues on the week, but still seems to be trending higher. US real estate loans continue trending up, back to April highs.

Looking at US market sentiment, Manufacturing PMI and Non-Manu Business activity both rebounded sharply in June, showing that the reopenings in the US are leading to renewed optimism. The lagged U Mich Consumer data shows the beginnings of a turnaround as well.

Data as of May 31st due to provider lag. June values at 78 vs May 72.

The Federal Reserves continues to pull back on its asset purchases, with Repo support at near zero on the week. CB Swaps and MBS purchases are also down, and foreign assets held plateau.

In contrast, in the EU CB we see assets skyrocket, though the data is more lagged. In Germany, the positive data continues, with unemployment continuing to rebound and manufacturing sentiment starting to turn around. Similar consumer and production sentiment turnarounds can be seen across major economies.

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