Closing Wrap - Thursday 30.07
Headlines
  • US Economy Shrinks At Record 32.9% Pace In Q2
  • S&P 500, Dow Slip After Grim Data; Trump Suggests Election Delay
  • Senate Republicans Dismiss Trump Proposal To Delay Election
  • Senate Committee Backs Allowing Americans To Sue China Over Virus
  • Trump: Drug Prices ‘Will Soon Be Lowered Massively’
  • Pompeo Warns New Measures Planned For China Over Human Rights
  • Chinese-Backed Hackers Targeted COVID-19 Vaccine Firm Moderna
  • Google Will Announce Its New Budget Android Phone On Aug. 3
Commentary
US Jobless Claims Rise For Second Consecutive Week

1.434mln

Claims came in below the consensus estimate of 1.445mln and rose from the prior 1.422mln, hitting a five-week high. This previous week was revised higher by 6k from 1.416mln. The four-week moving average increased to 1.368.5mln, a rise of 6.5k from the previous week. This is the second consecutive week claims have risen, and there are now 54.07mln workers who have filed first-time unemployment claims since the start of the pandemic.

 

17.02mln

Continuing claims ticked up by 818k from last week, above the expected 16.2mln. The prior reading was revised lower, from 16.2mln to 16.151mln, and the four-week average now stands at 17.058mln versus the prior 17.493mln. (LiveSquawk - Continue Reading)

US Economy Shrinks At Record 32.9% Pace In Q2

The U.S. economy suffered its sharpest downturn since at least the 1940s in the second quarter, highlighting how the pandemic has ravaged businesses across the country and left millions of Americans out of work.

 

Gross domestic product shrank 9.5% in the second quarter from the first, a drop that equals an annualized pace of 32.9%, the Commerce Department’s initial estimate showed on Thursday. That’s the steepest annualized decline in quarterly records dating back to 1947 and compares with analyst estimates for a 34.5% contraction. Personal spending, which makes up about two-thirds of GDP, slumped an annualized 34.6%, also the most on record.

 

The figures lay bare the extent of the economic devastation that resulted from the government-ordered shutdowns and stay-at-home orders designed to slow the spread of the novel coronavirus that abruptly brought a halt to the longest-running expansion. While employment, spending and production have improved since reopenings picked up in May and massive federal stimulus reached Americans, a recent surge in infections has tempered the pace of the recovery. (Bloomberg - Continue Reading)

Eurozone Economy Poised For Record Decline In Q2; July Inflation To Falter

Economic activity in the Eurozone most likely contracted at a record rate in the second quarter, a period that included the height of Covid-19 lockdowns in Europe, and July consumer price growth in the single-currency area is set to decline after German inflation fell more than expected, according to government data released Thursday.

 

Analysts say the EU statistics office will announce a 12.0pct quarterly drop in Eurozone GDP in its preliminary growth and inflation reporting on Friday (09.00 GMT). The economy in the single currency area contracted a record 3.6pct on the quarter in January-March.

 

The annual growth rate in the second quarter is expected to fall to -14.5pct from the -3.1pct announced for the previous three months.

 

July consumer price growth in the euro area is also headed lower, according to economists, who see the annual headline rate falling to 0.2pct from 0.3pct in June, which would further distance the indicator from the European Central Bank’s target of near but below 2pct. Core inflation this month is expected to hold steady at 0.8pct. (LiveSquawk - Continue Reading)

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