US Dollar is growing, global stocks are going down
US dollar saw growth while markets struggled to get back on track for growth on May 4. The optimism of the traders has been impacted by the new tensions between the United States and China - the countries are fighting over the presumed origins of COVID-19, as well as the possible new tariffs.
While Chinese and Japanese exchanges are on holiday, US stock futures went down by 0.7%. FTSE futures dropped 0.6%, while European stock came back from the break and right into a tumble. Euro Stoxx 50 lost 3%.
Meanwhile US crude lost 6% after three gainful sessions in a row. US dollar returned to growth in trading against Aussie and kiwi.
MSCI Asia Pacific index went down 2.5%, impacted by Heng Seng returning after the holiday to one of the steepest drops this year.
International relations have been once again sourced by US-China spat. President Trump accused Beijing of concealing the information about the virus in early stages. Secretary of State Mike Pompeo claimed to have “significant” evidence that the virus escaped from a lab in Wuhan. Growing tensions and the possibility of new tariffs impacted the markets negatively .