Stocks climbed higher this week as encouraging data out key global economies continued to foster optimism of recovery. This week also marked the end of a very strong quarter for equities and the end of the first half of 2020.
World markets retreated after the International Monetary Fund (IMF) downgraded its forecast.
Following a bruising decline the previous week, world markets rebounded sharply. The biggest catalysts were the Fed’s decision to increase its support and the news that the White House is working on a massive stimulus plan focused on infrastructure investment.
After a strong first week in June, world markets turned into a sea of red. The week saw a dramatic reversal in sentiment as reopening optimism-the catalyst of the bounce off of the March lows- was followed by pessimism regarding the pace of the recovery.
As economies emerge from unprecedented lockdowns, market participants looked past pandemic worries and widespread social unrest in the U.S. that spilled over to the world to focus instead on signs of economic recovery.
World markets extended their gains this week. Optimism fuelled by world economies taking more reopening steps seemed to be the primary driver of sentiment but in the geopolitical arena, US-China tensions were put onto the front burner again.
Risk appetite returned to world markets. Equity indices were mostly up driven by the optimism from the economic reopenings and the large fiscal and monetary stimulus packages.
World markets retreated this week as escalated tensions in the US-China trade relationship, discouraging economic reports and warnings from policymakers weighed on risk sentiment.
World markets posted weekly gains across the board. Investors opted to focus on the optimism of progress in the reopening of the economies in some U.S. states and key regions in Europe.
World markets were mostly higher last week with investors seemingly encouraged by the gradual reopening of major economies. News of a possible treatment for patients ill with the coronavirus also boosted sentiment.