Sterling supported by encouraging Brexit news, mini budget – Saudi Gazette

Sterling supported by encouraging Brexit news, mini budget – Saudi Gazette

By Ipek Ozkardeskaya

GENEVA “”

US stock indices paused a five-day rally in New York, dragged lower by financial, industrial and energy shares. US treasuries and gold gained.

Worries about the rising number of new COVID-19 cases, prospects of a bumpy and slow post-crisis recovery, topped by Donald Trump threatening China with more executive orders including new restrictions on imports were brought forward as the euphoria following the government-fueled rally in Shanghai fast faded.

Good news was bypassed by investors. The US funding to support the development of a COVID-19 vaccine didn't whet investors' appetite in healthcare stocks. Meanwhile, the JOLTS data had little impact on the market mood despite printing nearly 5.4 million job openings in May, versus 4.8 million expected by analysts.

Although we believe that the market has multiple reasons to value most share prices lower, the expectation of more monetary and fiscal stimulus tends to temper the headwinds. Recently, we couldn't find solid bull-market drivers other than the additional stimulus hopes. But the markets moved higher with firm steps.

While the rise in technology stocks were reasonable given the sharp increase in their online services demand, other share prices kept on rising as well despite their highly damaged underlying businesses.

Hence, we