Risk assets enjoyed another strong week at Friday’s close, led by US equities. It is almost incomprehensible to think that the S&P 500 and the US dollar are almost back to the same levels seen at the beginning of 2020. Positive data helped spur the rally; US non-farm payrolls surprised to the upside, climbing 2.5 million in May, a very different outcome to the 7.5 million loss that analysts had forecast, unemployment also fell to 13.3%, defying expectations of a rise to 19%.

The ECB continue to do ‘whatever it takes’ to support the Eurozone; following the announcement that Germany had agreed a stimulus package of €130 billion. Christine Lagarde, Chairwoman of the ECB, announced that they would raise the Pandemic Emergency Purchase Programme or, PEPP for short, by a further €600 billion, taking the programme to €1.35 trillion in total. The programme has also been extended and will run out in June 2021 at the earliest.

In the UK, there has been a step change in the Government’s view on the hospitality industry, specifically pubs, restaurants and hotels. Previously, the sector was due to open in July at the earliest, but a new plan outlined by the government, means that pub gardens could be open as soon as 22^nd June. The ‘Save Summer Six’ led by Chancellor, Rishi Sunak, has a clear mission to get the economy up and running after being warned by Business Secretary, Alok Sharma, that 3.5 million jobs are at risk.