Weekly News Summary for July 3-9, 2020

Friday, July 3, 2020: European Stocks Weaken Despite Positive PMI

The European stock market turned glum on Friday after a positive start, as the euro zone’s upbeat PMI of 48.5 for the month of June failed to keep the confidence generated by the US’ strong close on Thursday.

The Stoxx 600 index dropped 0.6%, although it was still on track for an increase of over 2.1% for the week, while Germany’s DAX also lost 0.6%, the UK FTSE 100 shed 1% and France’s CAC 40 slipped 0.9%.

Monday, July 6, 2020: China’s CSI300 Hits Highest Levels since May 2015

China’s benchmark stock index climbed the most in over a year on Monday, driven by a wave of purchases triggered by comments from a state-owned media.

The blue-chip CSI300 index gained 5.7% to record its highest level since May 2015, after the China Securities Journal mentioned the need to adopt a healthy bull market in domestic equities.

Tuesday, July 7, 2020: Fed’s Bostic Warns Virus May Delay US Rebound

Atlanta Federal Reserve President Raphael Bostic warned on Tuesday that economic rebound of the US is at risk of facing a delay due to the rise of coronavirus cases across the south and west in recent weeks.

Growth of the new infections showed signs of slowing in Texas and Florida, the two states worst hit by the second wave of the virus in recent days, while the national rate of infections fell to just over 45,000, which was more than 20% below last week’s daily peaks.

Wednesday, July 8, 2020: Gold Prices Reach Nine-Year Highs

Gold prices rose more than $1,800 for the first time in nearly nine years as worries over the second wave of the COVID-19 pandemic and expectations for the Federal Reserve to increase monetary stimulus continued to encourage the precious yellow metal.

The World Gold Council said gold-backed ETFs had a record net inflow of $40 billion during the first half of 2020, and added 104 tons of gold in June alone, bringing global holdings up to all-time highs of 3,621 tons.

Thursday, July 9, 2020: Chinese Shares Drive Asian Stocks Up

Rising Chinese equities led Asian stocks up on Thursday, as market players looked past the US-China tensions and reimposed COVID-19 lockdowns and hoped the stimulus washing through the economy ends up in company earnings.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.8% and reached a 20-week high, while the Shanghai Composite continued its winning streak, rising 16% in eight sessions.