The trading week started on a mostly positive note, despite the growing tensions between the US and China, rising political unrest in the US following George Floyd’s death and mounting pressure from Facebook employees on company’s inaction faced with President Trump’s comments.
Data-wise, the May final manufacturing PMI figures from the most hit European nations came in better than expected on Monday, although the data was less promising in Germany, Japan and the US. So far, investors remain focused on global business reopening, the fact that the number of new Covid cases remains stable as economies restart operating and of course, the massive fiscal and monetary support from central banks and governments.
The positive sentiment outweighs even a faltering phase-one deal between Beijing and Washington, as China decided to slow down the US farm product purchases amid Washington interfered with its ‘internal affairs’ over the new national security law in Hong Kong, which has costed the city its special status.
Energy and financials continue outpacing the positive market move – a sign that investors are betting on a further market recovery based on improved sentiment vis-à-vis the recovery post-Covid crisis.
US equity futures are marginally lower, with Nasdaq futures showing less vulnerability, however. FTSE (+0.52%) and DAX futures (+0.61%) hint at a positive start in Europe.
