This week’s recap found two key factors: the markets were affected by fears of a second outbreak of coronavirus in the US and major economic powers, and global monetary stimulus to boost the economy.
Global stocks move higher in uneven trading on Thursday, as investors calculated the potential economic impact of a surge in U.S. coronavirus cases versus the loosening restrictions on the U.S. banking sector, while safer assets, including U.S. Treasuries & the dollar, oil & precious metals edged higher.
The U.S. government is now weighing new tariffs on $3.1B of imports from France, Germany, Spain & the U.K. As the E.U. prepares to open its borders to international travelers, it may also extend a ban on visitors from America, as Europeans are still prohibited from entering the U.S. under virus travel restrictions.
U.S. consumer spending rebounded by the most on record in May, which accounts for over 2/3 of U.S. economic activity, jumping 8.2%. The largest increase since the government started tracking the series in 1959, but the gains are not likely to be sustainable, with income dropping & expected to decline even further, as millions lose their unemployment checks starting next month.
U.S. crude storage hit another record; India to suspend some deals with Chinese firms; Duda & Trump to sign a defense cooperation agreement; Amazon to buy Zoox for over $1B; Nike suffers a quarterly loss; a rather powerful earthquake struck Mexico; world’s most powerful supercomputer seeks a cure for coronavirus; Billions of desert locusts invading Sanaa.