Today's news headlines:
‘Reopening hospitality in England fails to boost retail footfall in May’. Despite the anticipation for the reopening of the economy, footfall to UK retail outlets in the fourth week of May was 27% below 2019 levels. However, shoppers that were out to visit these stores were much more willing to spend, with conversion rates currently between 40-50%. With the eviction protection scheme due to end on June 30th, and retailers tallying up approximately £3bn in rent arrears, it’s likely businesses will be hoping footfall increases in the next phase of the road map and spending also continues on a positive trend. (Financial Times)
‘Oil prices rally as Opec+ producers agree slow supply increase’. Oil rose 3% yesterday nudging above $71 a barrel after the announcement that there would be a small increase in supply in July. This came somewhat unexpectedly after the increased optimism surrounding the coronavirus vaccine rollout, government stimulus, and the reopening of economies. As a result, oil demand has been on the rise. However, market uncertainties surrounding the pandemic have kept the group cautious, especially with the worsening coronavirus conditions in both India and Japan. (Financial Times)
Today's events, rates, and data
Markets ticked higher yesterday, with the S&P 500 gaining 0.14%, trading just 0.7% away from the highs hit back in May. Across the pond, the FTSE 100 finished the day 0.39% higher. Despite reaching a three-year high and trading above $1.42 on Tuesday, Cable now continues to drift lower, maintaining support at the $1.4150 level.
China Caixin Services PMI: 55.1 vs 56.3 last month
US ADP Non-Farm Employment Change: 1:15PM
US Unemployment Claims: 1:30PM
US ISM Services PMI: 3:00PM
Bank of England Governor Andrew Bailey Speaks: 5:00PM
GBP/USD – 1.4150
GBP/EUR – 1.1607
EUR/USD – 1.2188
USD/CAD – 1.2051
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