Market Overview, June 9

Global growth appears to have taken a harder hit than expected.

Economic News
2020年6月09日

Financial authorities in the United States have officially declared that the country is in an economic recession. This announcement comes amid reports of record high unemployment (13.3% in May, down from 14.7% in April) and a major drop in the GDP during the first quarter of 2020. Reports on the second quarter won’t be ready for a few more weeks. The Q2 reading is expected to be a bit better, it will likely still mark an economic downturn in the United States.

The reason for the slowdown in the economy are the lockdowns imposed to help prevent the coronavirus from spreading and infecting more people. This meant businesses of all sizes - from small local shops to huge automobile factories - had to close down during the pandemic.

It is estimated that global economic growth will drop by 5.2% because of the coronavirus pandemic, according to data by the World Bank. The pandemic will have a slightly smaller impact on developing countries than it does on the developed ones, which will take a harder hit of 7 or more percent. The World Bank’s estimate is almost twice worse than an earlier prediction made by the IMF.

In other news, the oil market has turned bearish today. After the initial optimism caused by OPEC+ members deciding to extend their production cuts till the end of July and higher demand for oil from China, now the long-term risks for oil are back. The cuts are still predicted to be insufficient compared to the drop in demand globally, which will most likely keep oil prices low.

The Brent crude declined to $40.06, while the WTI reached $37.30.

Today stock indices are moving down as traders are claiming the profits earned from investing in the improving market conditions over the past few days.

Anna Sneider

Economic News

Market Overview, June 8

The mood on the market remains positive.

Anna Sneider
2020年6月08日

Economic News

The Oil Market Stabilizes

A snap agreement to keep production low in July is boosting oil prices.

Anna Sneider
2020年6月05日

Economic News

Market Overview, June 5

European markets are improving, while the US is serving some crucial data today.

Anna Sneider
2020年6月05日