Friday 31st July 2020

The US dollar continued to slide, with a fall in shares and US Treasury yields, as GDP numbers showed the extent of the shock to the US economy in Q2. Shortly afterwards, President Trump tweeted the suggestion that the US election in November be delayed. A rise in continuing jobless claims added to the bad news from America, where the administration is no nearer reaching an agreement on the next phase of the fiscal stimulus program. In Europe Germany’s flash GDP umbers were worse than expected, as infection rates rise in numerous countries. At home cases might have peaked, but more controls will hit the economy harder. The AFR is suggesting today that last week’s mini budget is already out of date.