Morning Report

Morning Report – Monday 15th June

Main Headlines

After 83 days of coronavirus lockdown, non-essential stores in England reopen their doors this morning. The stores have been closed since March 23 when Prime Minister Boris Johnson imposed a lockdown to stem the spread of the virus. While outdoor markets and car showrooms reopened on June 1, today will be the big return to business for retailers.

Beijing shut its largest fruit and vegetable supply centre, a second market and locked down nearby housing districts as more new Covid-19 cases were reported. The vice premier said risks are high it could spread. The resurgence which comes after China’s aggressive steps to exterminate the virus, raised doubts about the prospects for controlling the outbreak globally.

Risk assets have been sold off overnight with European futures, Asian equities and S&P 500 contracts tumbling on the latest pandemic news. Treasuries rose. The Aussie and currencies of major Chinese trading partners slumped. Oil tumbled, with WTI down more than 3%. Gold fell with most base metals.


The British pound has continued its decline against most currencies due to concerns trade negotiations between Britain and the European Union are not making enough progress. Boris Johnson and his Brexit team will aim to speed up talks with the EU on a video call with the bloc’s chiefs today. This after Brussels warned it won’t sacrifice its economic interests just to do a deal. In his first direct intervention in the process since January, The PM will ask to get an agreement by autumn “at the latest” and will make it clear he’s ready to walk away if there’s no compromise.


The euro enters the new week on the defensive and with risk appetite in the driving seat ahead of Thursday’s EU meeting, from which investors hope to see movement toward a compromise on coronavirus recovery fund proposals. The currency spent the latter half of the week in retreat from recent highs.


The U.S. dollar is stronger against most of its counterparts as fears of a second wave of the coronavirus in Beijing prompted investors to sell currencies sensitive to risk. Market participants are monitoring a spike in coronavirus cases in the United States, as fears grow that another outbreak could inflict greater damage on the global economy.

Main Economic Data/Central Banks/Government (All Times BST)

9:00 a.m.: Italy May CPI
10:00 a.m.: Euro-Area April trade balance
1:30 p.m.: U.S. June Empire Manufacturing