Weekly News Summary for July 31 to August 6, 2020

Friday, July 31: Eurozone Registers Biggest GDP Drop in History

The Eurozone’s economy took a plunge in the second quarter due to the impact of the COVID-19 pandemic, with the bloc’s gross domestic product (GDP) registering its biggest single quarter drop in history.

Data from the Eurostat showed on Friday that GDP fell by 12.1% in the euro area in the three months through June, significantly higher than the 3.6% stumble in the first quarter, while GDP in the broader European Union (EU) declined 11.9% compared from the 3.2% slump reported in the first quarter.

Monday, Aug. 3: Microsoft Eyes TikTok’s US Operations

Chinese video-sharing app TikTok has found itself in US President Donald Trump’s crosshairs, becoming the latest flashpoint in the weakening relationship between the US and China.

Microsoft Corp., however, may have a solution to the problem after the US tech giant said it was in talks with TikTok owner ByteDance Ltd. over buying the app’s operations in the US, which could make Microsoft a major competitor to social media groups such as Facebook Inc. and Snapchat.

Tuesday, Aug. 4: Nasdaq Composite Index Posts Another Record High

US main stock indexes rose on Tuesday, with the Nasdaq Composite index posting another record high, as large tech reduced losses in the end of the session, although the lack of clarity over the progress of discussions about the next COVID-19 stimulus package pressured sentiment.

The Dow added 0.62% or 164 points, while the S&P 500 gained 0.36%, and tech-heavy Nasdaq climbed 0.35% before easing to trade with a 0.3% loss.

Wednesday, Aug. 5: Gold Rises Past $2,000 Barrier for the First Time

Gold surged past the $2,000 per ounce level for the first time in 2020 on Wednesday, supported by weakness in the US dollar and a considerably low-interest rate environment.

Rising above the historic barrier, gold futures were last seen up by 1.8% to $2,0.45.80 per troy ounce, while the rapid growth in coronavirus cases in the US has brought the safe-haven metal’s gains to more than 30% this year.

Thursday, Aug. 6: BoE Leaves Stimulus Policy Unchanged

The Bank of England (BoE) kept its monetary stimulus unchanged on Thursday, stating that it has no plans to tighten policy until it is more confident about the outlook for inflation.

Policymakers voted unanimously to leave its benchmark interest rate at a record-low of 0.1%, while the central bank’s asset purchase size was also held at £745 billion ($980 billion).