Equity markets pressed down by new fears
Equity markets edged lower on May 20, impacted by the new episode of US-China tensions. Meanwhile, oil prices continued to go for the highest position in the last two months.
German DAX and British FTSE, as well as Wall Street futures all lost between 0.7% and 1%. Pound and euro are losing ground in trading against the dollar. According to the purchasing manager indexes, the economic activity in Europe is coming back faster than expected. Nevertheless, analysts still warn about further economic contraction.
The earlier eagerness for risky investments has been undermined by the new tensions in US-China relations, which were reignited by President Trump’s harsh stance on Chinese management of the pandemic.
At the same time, oil sector is still headed for a recovery. US crude oil gained 1.9%, reaching US$34.09 per barrel. Brent added 1.8% and reached US$36.39. The benchmarks are at their highest since the first days of March. Traders are hoping for a growth of demand after the economic reopenings.