Wednesday 1st July 2020

China has passed the new security law for Hong Kong, with the US already responding by targeting Huawei and ZTE. Dr Fauci has declared the virus as ‘out of control’ in the US and more measures need to be brought in to contain it. Despite all this uncertainty equities continue to rise in the US. NAB’s Rodrigo Catril says it has been driven by the expectation of economic recovery as the lockdown eases, but there could be a swift reversal if the infection numbers continue to rise. There’s also discussion on Boris Johnson’s (underfunded) New Deal and a swag of data releases today, some of which could drive market sentiment.