Weekly financial market overview 17.08.-23.08.

News - August 24, 2020

Picture

 


Konstantins Goluzins, CFA



Head of Asset Management
Phone.: (+371) 6700 0456
E-mail: trust@bib.eu

LINKEDIN PROFILE  

Main events of the previous week


On August 19, the Democratic Party of the United States confirmed Joe Biden as their only candidate for the presidential election. Biden said that as president, he would serve all Americans equally - both his supporters and those who did not support him. During his speech, he criticized the current head of state, Donald Trump, including how he is fighting the spread of the coronavirus in the United States. 77-year-old Biden ran twice for the presidency - in 1988 and 2008. In mid-August, as shown by an SSRS poll, 50% of respondents expressed their readiness to vote for the Democrats, for Trump and Vice President Michael Pence - 46% of those polled. The Democratic Party of the United States also officially approved Kamala Harris as a candidate for the position of US Vice President. Harris, 55, is a California Senator and former state attorney. The GOP is expected to re-nominate incumbent President Donald Trump as its sole presidential candidate this week. The US presidential election will be held on November 3.

The GDP of Japan, the world's third-largest economy, contracted 27.8% on quarterly annualized data in April-June, the highest since comparable data began tracking in 1980. Japan's real GDP fell to 485 trillion yen, the lowest since April-June 2011. Japan suffered its worst economic downturn in history in the second quarter, as malls emptied and demand for cars and other export goods collapsed due to the coronavirus pandemic. The data strengthened the case for bolder stimulus measures to stave off a deeper recession.

Economic data


US. The number of initial jobless claims for the week was registered in the amount of 1 million 106 thousand, which is 135 thousand more than the week before and 181 thousand more than analysts predicted.

According to the preliminary assessment of the PMI business activity index in August, the indicator increased by 4.4 points and amounted to 54.7. Of the indicators that make up the index, business activity in the service sector was 4.8 points higher, while the state of the manufacturing sector rose 2.7 points.

Eurozone. The consumer price index in July decreased by 0.4% versus June, while the annual inflation was 0.4%. The growth of the core inflation rate, excluding food and energy, amounted to 1.2% y/y in July.

According to the preliminary assessment of the PMI business activity index in August, the index fell 3.3 points to 51.6. Of the indicators that make up the index, business activity in the service sector was 4.6 points lower, while the state of the manufacturing sector decreased by 0.1 points.

Key events this week


  • Highlights this week include the re-nomination of Donald Trump for the Republican presidency, as well as the first-ever videoconference of the annual Jackson Hole symposium with representatives from the world's biggest central banks.
  • On Wednesday, the US is to publish data on sales of durable goods in July, as well as changes in oil inventories for the week.
  • On Thursday, the US will recalculate the fall in GDP in the second quarter and will publish the number of initial jobless claims for the week.
  • And on Friday, the United States will report on the personal income and expenses of Americans.

The information provided herewith has an informative nature. This information cannot be regarded as an offer or recommendation for purchase, storage or sale of securities, or as an investment recommendation, an investment survey or a consultation on investments, or a recommendation to entrust management of your assets to the specific investment manager. The Client is fully aware and undertakes all risks involved in the investment. This information is prepared by AS Baltic International Bank.

Back to all news
CUSTOMER SERVICE

(+371) 6700 0444

9:30 - 17:00

Monday - Friday

local time GMT +02:00

Try out the new Internet Banking!

Improved functionality, increased user friendliness as well as updated security solutions.

FIND OUT Arrow blue