Global shares continue to rise in value despite several trade tensions across the globe. Gold and silver rose despite the ongoing violent protests in the United States. At the same time, the United Kingdom eurozone manufacturing industry slightly improves with China's factories.
This week, global stocks have been gaining since May despite trade tensions between China and the US. Last week, US President Donald Trump announced that he would end preferential business treatment for Hong Kong in trade and travel. The move was lodged as a response to China's institution of a National Security Law that strengthens that hold of Beijing over the former British colony.
UK's FTSE 100 index improved by 1.2 percent at 6,148 points. France's CAC also grew by 1.39 percent at 4,760 points. Similarly, Italy's FTSE MiB increased by 1.6 percent at 18,485 points, and the US's Dow Jones Industrial Average up by 0.15 percent at 25,421 points. Nasdaq also increased by 0.35 percent at 9,522 points, and the S&P 500 index was better by 0.12 percent at 3,047 points.
US stock futures were expected to rise, although at a slower-than-expected pace. For the S&P 500, it was suggested that the benchmark index would post tepid gains for when the New York stock exchange bell opens. It has also improved for most of the trading sessions in a week. The said improvement was perceived as an indication that the US economy is starting to reach moderation.
European stocks also slightly improved this week. The pan-European STOXX 600 increased by one percent, while Germany's DAX grew by three percent. The improvement was perceived to be caused by Lufthansa's board approval of the government bailout. This improved the shares of Volkswagen and BMW by seven percent, respectively, at the prospect of a five billion euro government-funded scheme. The scheme was said to skyrocket sales of the companies.
China has reportedly sought its state-owned firms to suspend purchases of soybeans and pork products from the US. This was supposedly a required activity under phase one of the China-US trade deal. However, markets have shrugged the effects of this move.
Final readings of the stock markets also manifested optimism for investors that look closely on manufacturing surveys for their investments. The polls manifested that economic and business declines in the US have slightly recovered. Those in the UK and eurozone in May also improved. Initially, in April, production was at its record lows due to pandemic lockdowns.
In China, production unexpectedly rallied, and growth was experienced for the first time since January 2020. The dollar, on the other hand, has weakened as violent protests continue across the US. Gold and silver prices, however, slightly recovered due to save-haven buying from investors.
