Both Wall Street and the local market endured a fair bit of day to day volatility in June while remaining largely range-bound. July has kicked off on a positive note, belying the rising number of cases in the US in particular but in Australia as well.
Already one Victorian has slipped past the snipers into NSW and brought the virus with him.
Underpinning stock market strength is the counter-reality of economies still continuing to open, even as others re-close. And if things do go more meaningfully backwards that’s okay – central banks will simply pile in more funding, and in Australia, we may still yet see some continuation of fiscal support past September.
Note emergency US unemployment benefits expire at the end of this month.
The RBA meets on Tuesday to ensure us the printing press is still running 24/7. It’s an otherwise quiet week economically, and corporately, unless confession season updates begin to flow.
Australia will see June job ad numbers along with May housing finance.
The US will catch up with its June services PMI and report June PPI.
China will also report inflation numbers.
And that’s about it. Note school holidays continue in some states next week, thinning out volumes.
