At 12:30 GMT, the US economy released it second reading of the GDP for the first quarter of this year, which shrank by 5%, the lowest reading since the peak of the 2009 global financial crisis, due to the coronavirus pandemic, and lower than forecasts of contraction by 4.8%, while the first reading showed contraction by 4.8%. 

The US dollar rose on Thursday, rebounding from a 3-week low, as demand improved for the greenback as the best alternative investment,  following the escalating tensions between the US and China over Hong Kong, and ahead of key US data releases for the first quarter.

The dollar index rose 0.2% to 99.09 points, after opening at 98.91, and hit an intraday low of 98.77.

The greenback lost 0.1% yesterday, its second daily loss, and hit a 3-week low of 98.72 points, on improved risk appetite, after the EU revealed a huge economic recovery fund.

The Chinese parliament passed the new Hong Kong's national security legislation on Thursday, which paves the way for the final implementation in the city, amid speculation to intensify the tensions with the US.

US President Donald Trump said on Tuesday that the US would announce before the end of the week a strong response to the Chinese proposed legislation, and Bloomberg TV reported that the Trump administration was considering imposing sanctions on Chinese officials.

The US Secretary of State Mike Pompeo told the Congress on Wednesday that Hong Kong is no longer independent from China, which raised questions about the future trade relations between the US and the Special Administrative Region.

These developments in US-China political crisis mean further deterioration in relations between the world's two largest economies, which also threaten to cripple the global economic activities, which are already wigged down by the coronavirus pandemic.

Investors are anticipating key economic data releases today on the US GDP for the first quarter and the weekly unemployment claims report, which will deliver insight on the extent of the coronavirus economic impact on the US economy and labor market.

At 12:30 GMT, the US economy will release the final GDP reading for Q2, with forecasts to shrink by 4.8 on par with the first reading, which is the worst contractions since the 2009 global financial crisis.

At same time, the US economy will release the unemployment claims report, with forecasts of 2.100 million during the week ending May 23 vs. 2.438 million during the previous week.

The US economy closure since mid-March has cost around 37 million American workers their jobs, while the US unemployment rate rose to its all-time high of 14.7% during April.

In addition to the US durable goods orders reading, which is expected to drop by 19% in April vs. 14.7% in March , and the core reading is expected to drop 14.8% vs. 0.4%.

European stocks rose on Thursday, to hit an 11-week highs and extend gains for the fourth straight day, on strong investors sentiment, after the European Commission launched the economic stimulus fund that is aimed at supporting the countries most affected by the coronavirus in the Eurozone, which overshadowed the escalating tensions between the US and China over Hong Kong. 

The Stoxx Europe 600 index rose 0.7% as of 11:05 GMT, and hit the highest since March 9 at 353.75 points, after it closed higher by 0.2% yesterday after the European Commission revealed the economic recovery fund details.

The pan European index opened higher today, to head for the fourth straight daily gain, hitting an 11-week high, with most European markets and sectors seeing green today.

The travel and leisure sector saw the largest gains in Europe today, rising by 2.5%, following many countries measures to relax the coronavirus-lockdown.

The European Commission reveled yesterday its plans to launch a €750 billion economic recovery fund, to ease the coronavirus crisis, which is the worst economic crisis since the 1930s.

According to the plans, Italy and Spain, the two countries that were hardest hit by the coronavirus, will receive the biggest share with a total of €750 billion, Italy's share will be €173 billion, divided as €82 billion in grants and €91 billion in loans, and Spain will receive €140 billion, €77 billion grants and €63 billion loans.

Geopolitical tensions between the US and China over Hong Kong continued to escalate, especially after the Chinese parliament passed the new Hong Kong's national security legislation on Thursday, which raised speculation for US sanctions against Chinese officials today or on Friday.

S&P 500 futures rose 0.3%, hitting nearly a 3-month high, after the index closed higher by 1.5% yesterday at Wall Street, posting its third straight daily gain.

Back to Europe, the Euro Stoxx 50 index added 0.8%, the German DAX rose 0.5%, France's CAC 40 jumped 1.1%, while the UK's FTSE 100 rose 0.9%.  

Gold prices rose on Thursday, to head for the second straight daily gain, rebounding from a 2-week low, amid the escalating tensions between the US and China over Hong Kong, especially after the Chinese parliament formally passed to the security legislation.

Gold prices rose about 0.9% to $ 1,724.91, from the opening level of today's trading at $ 1,710.04, and recorded the lowest level at $ 1,704.05.

Gold prices rose 0.9% to $ ,724.91, after it gained 0.1% yesterday, rebounding from a 2-week low of $1,693.66 hit earlier.

Alongside gold's recovery attempts, it also drew support after the US dollar fell against a basket of currencies, especially following the announcement of a huge European economic stimulus.

The Chinese parliament passed the new Hong Kong's national security legislation on Thursday, which paves the way for the final implementation in the city, amid speculation to intensify the tensions with the US.

US President Donald Trump said on Tuesday that the US would announce before the end of the week a strong response to the Chinese proposed legislation, and Bloomberg TV reported that the Trump administration was considering imposing sanctions on Chinese officials.

These developments in US-China political crisis mean further deterioration in relations between the world's two largest economies, which also threaten to cripple the global economic activities, which are already wigged down by the coronavirus pandemic.

Gold stocks at the SPDR ETF rose 2.34 metric tonnes yesterday, with the total at the highest level since May 2013 at 1,119.05 metric tonnes.