25 may
2020
12:02
Markets
Markets Are Perplexed: Economies Are Opening while Tensions Between US and China Grow

European and American stock indices are on the rise while those of Asia are ambiguous. Investors are weighing the options provided by the opening of economies throughout the world and considering what to expect from the growing tensions between the US and China.

The stocks in the public health and recreation sectors have encouraged the growth of the Euro Stoxx index. It has gained 0.7%. Hong Kong stocks demonstrated a decline: Hang Seng dropped by 0.1% after the clashes of the police force with protesters opposing China's attempts to suppress dissent. Another outbreak that escalated into the street protests during the past weekend is threatening to destroy the already damaged Chinese-American relations.

Stocks grew in Tokyo, Sydney, and Seoul and fluctuated in Shanghai. The Japanese Government is expected to cancel the state of emergency in Tokyo. Markets are closed in the US, UK and Singapore due to the public holidays. It is expected that the Parliament of Singapore will declare another package of incentives tomorrow.

The oil is holding above the $33 level in New York. To date, West Texas Intermediate is up by 1% to $33.61 per barrel. Brent dropped 0.1% to $35.1.

The US dollar grew in relation to the principal currencies. The euro lost 0.2% and today it is traded at $1.0876. The Japanese yen is stable at 107.70 per $1. In China, the base rate of the yuan is at the lowest rate since 2008. The USD/RUB pair is traded at ₽71.3675 today.

Experts believe that the escalating verbal war between the US and China is threatening the recovery of the markets. 

In the meantime, even more Australian children returned to schools, while in Northern Italy, a region that suffered significant damage, zero people have died for the first time since the virus outbreak. The US authorities are thinking of restricting trips to Brazil, the country with the second largest number of cases.