Today the European markets are in full celebration mode after flash PMI data proved better than the forecasts. Though most of the PMIs are still under 50, which shows that the economy is shrinking rather than growing, the higher than expected numbers indicate that the eurozone is recovering faster than investors feared. As a result, stock markets around Europe all registered gains today.
The United States is sending mixed signals about its current positions regarding China. On the one hand, President Trump has repeatedly blamed the coronavirus pandemic on China, and Congress has condemned the Hong Kong security law passed recently. These two things created tension between China and the US.
However, despite Trump’s chief trade advisor saying that the phase-one agreement with China is done for (especially considering that China has failed to fulfill its promises regarding agricultural imports), now Trump maintains that the deal is all fine and dandy.
The President’s tweets in support of the trade deal with China have so far proven to be enough for the financial markets, which have calmed down for the moment. Stock indices in the United States reacted positively to Trump’s comments, starting in the green again.
Later today we also expect PMI figures from the United States, which may affect the markets further, depending on whether they meet the forecasts or not. The Federal Reserve will also publish some fundamentals today, though they are of lesser importance at present.
The news about the trade deal together with Europe’s unexpectedly positive PMI data, have also had a good effect on the price of crude oil. The Brent crude climbed to $43.76 today, while the WTI reached $41.44.
