The market sentiment is mixed. Let’s look at most interesting movements on the market today.
Christine Lagarde warns slowing productivity threaten living standards
Living standards around the globe could edge down unless governments invest more in research and education, thus helping to revive poor productivity growth. That’s what International Monetary Fund Managing Director Christine Lagarde stressed on Monday.
Lagarde told in a speech in Washington that the private sector alone won’t be able to generate enough innovation to increase productivity to decent levels without government active assistance.
Her remarks were accompanied by the publication of an IMF research that found that the 2008-2009 financial downtime along with deep recession played a greater role in slowing productivity than previously expected, choking global demand and investment.
Economists have long explored productivity gains as significant for sustaining higher wages as well as living standards, though they have struggled to explain a protracted slowdown in productivity surge since the early 2000s.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.