The European Commission has recently announced a 1.85-trillion-euro fund for the European Union’s budget and recovery funds for the economies that have been struck by the pandemic. This news of a relief fund has resulted in a hike in many of the indexes and stocks. The euro gained value from the previous 1.0932 to 1.1022 against the dollar. STOXX 600 gained with 0.7 percent, which was the biggest one-day hike since the 10th of February. Moreover, sovereign debts in countries like Portugal, Greece, and Spain saw plunges more than that observed in the past few weeks. As lockdown restrictions are being relaxed across countries in Europe, the region’s indexes show improvement, like MSCI that consists of 49 indexes gained 0.3%, in the highest surge in the last two and a half months. These gains indicate that the economies might be on the path to recovery.
However, relations between the U.S. and China made sure that these gains did not get the spotlight and lighten everyone’s burdens. Hong Kong is in the midst of political disturbance. Recently, the riots were squashed by the riot police when people were struck with pepper pellets. Moreover, all of this happened in the central business district of Hong Kong. The U.S.-China dispute over how fast the fuel price will recover led to another fall in the prices of oil. For example, Brent crude LCOc1 futures got slashed by 1.6% to USD 35.60.
China did not flinch when U.S. President Donald Trump said that he would order a strict inquiry on China to control the unrest in Hong Kong. The worst part of this tussle is that it directly affects the global economy and curtails its recovering.