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American stock markets fell today, as European stock indices witnessed a significant decline due to fears of a second wave of the Coronavirus pandemic. This potential return to crisis levels of infection could delay the global economic recovery that has been anticipated – or hoped for – in second half of the year.
Today's economic agenda is full of some important economic data, as the Australian trade balance began to show a trade surplus of 2.47$ billion in May. Exports rose by 9%, while imports rose by only 1%.
The markets were calm in today's trading amidst the absence of important data and events on the economic calendar, as the markets are awaiting the minutes of the Fed's last meeting in June which raised interest rates to 1.25%, plus the issue of reducing its balance.
Stocks markets and oil prices plummeted, while bonds and gold markets rallied today, following North Korea's long-range ballistic missile test as well as US markets on hold due to Independence Day celebrations, dampening risk appetite.
The start of the week was calm and didn't witness strong moves, but the US dollar managed to erase some of its losses last week, ahead of US employment data to be released on Friday. This was helped by the positive figures for the manufacturing sector, with the ISM Manufacturing PMI recording its highest reading in two and a half years at 57.8 points.
With the start of the second half of 2017, several important economic data will be released this week and are likely to have a significant impact on market movements.
This week witnessed a marked weakness for the US dollar against most of its rivals and investors turned to sell the dollar as many policy makers hinted to start a shift from the easing policy towards tightening policy to begin reducing the gap with US Federal Reserve policy. The dollar index has fallen to the lowest levels over 8 months at 95.20. On the other hand, the US economy grew by 1.4% in the first quarter of 2017.
The economic calendar today has seen few important economic events, except the final reading data for GDP in the United States, where the economy grew by 1.4% in the first quarter on an annualized basis. Personal consumption figures were revised up to 1.1%, while investment growth was revised down slightly.
The ECB Forum on Central Banks concluded today with discussions on investment and growth in developed economies. Mark Carney, the governor of the BOE, pushed the pound
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