As of June 2020, many economies began to gradually re-open which has led to a surge in investor optimism. With the easing of lockdown measures and border controls, business activities are picking up again and as will consumer spending.
Major indices on Wall Street and the Asian markets are on an upward trajectory, riding high on this renewed optimism. The S&P 500 gained 5% in the first week of June, its biggest weekly gain since April of this year. On June 8, the Nasdaq Composite added 1.1% to set a new closing high of 9924.75, while Japan’s Nikkei 225 surged 1.4%. Hopes of an economic recovery in the near term have been further driven by a surprisingly positive US jobs report, along with news from the European Central Bank (ECB) that it would expand its stimulus program and positive developments towards a European recovery fund.
However, the pandemic is far from over, with infection cases on the rise in many parts of the world. Economic reports here on in could be positively surprising like the US jobs report for May 2020 or completely devastating. Traders need to watch out for these events, which could spark volatility in the forex and cryptocurrency markets. By timing their positions according to these news releases, they could find plenty of trading opportunities.
Here are some important news releases to look out for in July 2020.