Investors are finding reasons for optimism in the latest surveys surveys of economic activity after a month of devastating news on unemployment and growth. Globally, PMIs are trending in a positive direction and US data is picking up after hitting a trough in April. Meanwhile, European fiscal policy is taking a bold turn.
- US housing data was a positive surprise last week as Franco-German agreement on debt mutualisation and plans for an EU green recovery fund boosted sentiment.
- Markets are looking ahead to US GDP and consumer confidence figures next week to get a clearer picture of the emerging post-Covid economy.
- Goodbody remains in a defensive posture on equities and is seeking high-quality cyclical names that should perform in an improving environment.