Trending: Oil | Gold | BITCOIN | EUR/USD | GBP/USD

UK retail sales drop to new record low

Economies.com
2020-05-22 08:32AM UTC

At 08:00 GMT, the British economy released the monthly retail sales reading for April, which fell by 18.1%, the lowest reading since the data was first collected, lower than forecasts of -15.8%, and lower than the previous reading of -5.1%. This data is negative for the sterling pound.

Oil sheds over 9% after China abandons 2020 GDP target

Economies.com
2020-05-22 09:09AM UTC

Oil prices fell on Friday, for the first time in three days, as the US crude lost more than 9% and Brent crude fell 6%, on profit taking and renewed worries over the coronavirus impact, after China China abandoned setting a target for GDP growth, and escalating geopolitical tensions between the US and China.

 

The US crude (WTI) fell 9.2% to $30.73 a barrel, after opening at $33.85 today, with a high of $33.98, and Brent fell 6.3% to $33.86, after opening at $36.15, with a high of $36.22.

 

Yesterday, the US crude gained 1.1%, and hit a 10-week high of $34.64 a barrel, and Brent futures rose 0.5%, and hit the highest since March 11 of $36.96.

 

These gains came as fears over the US oversupply receded after data showed a drop in the US crude inventories fell the most in 2020 and the production levels fell for the seventh straight week.

 

The Chinese authorities decided on Friday to not set a specific target for economic growth this year, which renewed concerns about the Covid-19 pandemic impact and a drop in fuel demand.

 

Oil prices are also weighed down by the escalation of the US-China tensions, which threatens a deterioration of the trade relations between the two sides after signing of the first phase of their trade deal.

 

The Chinese government announced on Thursday plans for a new national security law in Hong Kong, which led Washington  to say that the US would respond "very strongly".

European stocks drop for second day on US-China tensions over Hong Kong

Economies.com
2020-05-22 09:37AM UTC

European stocks fell on Friday, to head for the second straight daily loss, on risk-aversion due to escalating geopolitical tensions between the US and China over Hong Kong.

 

The Stoxx Europe 600 index fell by 0.5% as of 09:05 GMT, after it closed lower by 0.8% yesterday on fears over US-China tensions.

 

The pan European index opened lower today, to head for the second daily loss, with most European markets and sectors seeing red today.

 

The banking sector saw the largest losses in Europe today, dropping more than 3%, due to escalating tensions between the US and China.

 

The Chinese government announced on Thursday plans for a new national security law in Hong Kong, which led US President Donald Trump to say that the US would respond "very strongly".

 

S&P 500 futures fell 1.1%, after the index closed lower by 0.8% yesterday at Wall Street, posting its second daily loss in 3, on risk aversion.

 

Back to Europe, the Euro Stoxx 50 index fell 0.6%, the German DAX lost 0.7%, and France's CAC 40 dipped 0.4%.  

 

In the UK, the FTSE 100 index fell 1.3% to lead the list of losing markets, after British retail sales fell to a new record low in April.

Euro backs off three-week high on US-China tensions

Economies.com
2020-05-22 08:48AM UTC

Euro fell in European trade against dollar for another session away from three-week highs on profit-taking while the dollar gains ground on haven demand as US-China tensions mount. 

 

EUR/USD fell 0.4% to 10900, with an intraday high at 1.0953.

 

Euro closed yesterday down 0.3%, the first loss in five sessions away from three-week high at 1.1008. 

 

The dollar index rose 0.3% on Friday for another session away from two-week lows at 99.00. 

 

Geopolitical tensions are surging between US and China on multiple issues such as the Covid 19 pandemic, the handling of Taiwan and Hong Kong. 

 

The pair is still up 0.7% on track for the first weekly profit in three on profit-taking. 

 

Both Germany and France suggested launcing a 500 billion euro recovery fund to support countries and segments most affected by the virus. 

 

However, gathering approval for that proposal might take time, with some richer and more conservative countries expected to balk at the scale of it.