A boost for the European economy as stocks pushed higher this Tuesday. The new improvement relative to May comes as the U.S.-China Phase One trade deal remained stable as investors hoped-for economic recovery from the coronavirus crisis.
The DAX in Germany traded 1.7% higher, while the U.K.’s FTSE index rose by .8% and France’s CAC 40 went up by 1.4%. The Eurozone composite PMI (purchasing managers’ index) elevated to show a reading of 42.4.
Following the improvement, oil prices inched higher on Tuesday, bringing relief to the tension over U.S.-China trade war. Gold futures went up by .1% while EUR/USD rose by .3%.
The boost to stocks was reaffirmed as White House trade advisor Peter Navarro who suggested otherwise, took back his words with the trade deal with China being “over”, after President Trump’s tweet indicating the war is still intact. Later, Navarro clarified that the trade deal is still on, and mentioned his statements being taken “out of context”.
As per the World Health Organization, the Covid-19 numbers are on the rise with increased hospitalizations. Yet the European manufacturing sector saw the biggest improvement in the region.
Despite the promises of Phase One trade deal not being met anymore, the improvement was a ray of hope.