CurrenciesStock Market

Oil Booms as Shares Stagger

Thursday marked a slip for equity markets. This occurred due to worries about the long-term negative effect the novel coronavirus already had on the economy, as well as the ongoing China-U.S. trade tension. Although these issues affected equity markets, they had no hold over oil prices as they hit a 2½ month high.

FTSE, FCHI, and GDAX bourses, as well as Wall Street futures, all dipped between 0.7% and 1%. Furthermore, the pound and the euro weakened against the dollar after it recovered from its four days of consistent loss.

Japan’s Nikkei 225 dropped by 0.2% after Japan’s data revealed a 21.9% collapse in its April exports. Despite a bad trade report in Korea’s import and export within a 20-day period, the country’s stocks still closed higher. The report showed a 16.9% decline in imports and a 20.3% decline in exports.

For currencies, the dollar jumped to $1.2291 per pound and $1.2291 against the Euro. It further strengthened against the New Zealand Dollar and the Australian Dollar. The oil market remains in the green, as Brent gained 1.8% at $36.39 a barrel, while the United States Crude jumped to $34.09 per barrel, with a 1.8% increase. These peaks are centered on hopes that fuel demand would experience a global recovery.

There was also a slight increase in Spain and Italy’s borrowing costs, as investors of the bond market awaited bond sales, as well as information on the projected $550 billion COVID-19 recovery fund from the European Union.

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