In this week’s recap, we found the rise in the global markets, with the US Nasdaq adding the 7th record close, as investors further embraced corporate earnings that surprised to the upside. Investors worry the U.S. government’s response to the pandemic is taking the dollar down, in its worst monthly performance in a decade in July. The recent stimulus is accelerating what has so far been a slow erosion in USD status as the world’s dominant reserve currency. Rock-bottom U.S. interest rates & concerns over a potential rise in inflation are further denting the dollar’s appeal.
World stocks end 4 days of gains on Friday after U.S. President Trump increased tensions with China by banning U.S. transactions with 2 popular Chinese apps: Tencent’s WeChat & ByteDance’s TikTok. Chinese stocks led the losers in Asia & its currency slumped after Trump issued executive orders to purge the Chinese apps from U.S. digital networks.
Euro-zone manufacturing activity expanded modestly last month, its 1st growth since early 2019, & Asia’s disruption is easing as the contraction slowed in export-reliant nations, adding to hopes the sector is emerging, from the hit of the corona-virus pandemic. The Euro-zone economy contracted a record -12.1% in Q2, but +8.1% growth is being forecast for Q3.
Gold rallies above $2,000 per ounce for the 1st time ever, with spot prices hitting $2,041 per ounce on Wednesday. It is the result of a weakening dollar, which makes it cheaper for foreign investors to buy gold, as well as low yields on other safe-haven assets like U.S. Treasuries. Investors fear the trillions in unprecedented stimulus from central banks, which could result in inflationary pressures.
The amorphous boron nitride will revolutionize the electronics industry; Disney shares rose, but have fallen 10% in 2020; electronic skin developed in Singapore; Apple is now the world’s most valuable company; Lim Guan Eng arrested for corruption; The Philippines in recession for the 1st time in 29 years; world food prices increased in July; a massive explosion in Beirut kills 100 people.
Podcast: Play in new window | Download | Embed
Subscribe: RSS