Morning Report

Morning Report – Wednesday 24th June

Main Headlines

The failure by the U.S. to contain its outbreak may mean Americans, like Brazilians and Russians, will be banned from entering the EU when the bloc reopens its borders on July 1, the New York Times reported. European leaders are wrangling over two possible lists of acceptable visitors based on how countries are faring. Both tallies include China. A final decision is expected early next week.

Boris Johnson announced the lifting of Britain’s lockdown in July. The scientists appearing with the PM were clear about the risks, with Chief Medical Officer Chris Whitty warning Brits to plan “for the long haul” on expectations the pandemic will persist at least until this time next year. Johnson said reopening was his call and he’d take full responsibility for the decision.

Early gains by Hong Kong shares fizzled out, and Japan’s equity benchmarks sank along with FTSE 100 futures. S&P 500 futures were steady and Nasdaq contracts added to gains after the underlying gauge closed at another record. Treasuries edged lower, and oil fell. Gold was little changed.

Doubts about the global economy’s prospects for shrugging off the pandemic have thrust gold to the cusp of resistance around the $1,800 an ounce mark. A break would open the way for a move toward the record just above $1,920 set in 2011.


Sterling hit its lowest levels since March against the euro this morning but is fairly steady against the dollar as global risk appetite improved due to positive European economic data and an easing of U.S.-China tensions, lessening demand for safe havens.


Upbeat data in Europe boosted the euro and helped stoke hopes for a global economic recovery, underpinning appetite for riskier currencies. The euro is headed for its best month against the dollar since October with PMI data yesterday better than expected and a German business confidence survey this morning likely to show a strong rebound.


The dollar was weaker yesterday as positive sentiment seems enough to offset worries about a resurgence in U.S. coronavirus cases, and to draw bets – reflected in a rising gold price – on broad dollar weakness.

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

8:45 a.m.: France June manufacturing, business confidence
9:00 a.m.: ECB’s Lane speaks
10:00 a.m.: Germany June Ifo Survey
1:00 p.m.: Czech rate decision
4:30 p.m.: EIA Crude Oil Inventories Report