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Global stocks have continued their cautious recovery amid the easing of lockdowns – reaching levels last seen in early March. The Stoxx Europe 600 rose this week, as the EU unveiled €2.4 trillion euros (US$2.6 trillion) in promised recovery spending to rebuild the continent’s economies after the impact of the coronavirus.
Investors are reportedly responding to signs of recovery by picking up some of the stocks that have fallen during the coronavirus outbreak, especially in the travel sector. However, rising tensions between the U.S. and China (this time over Hong Kong) made their mark as contracts on the S&P 500 wobbled.
Oil prices declined midway through the week after an industry report revealed a renewed increase in U.S. crude inventories. Futures fell 1.4% in New York on Thursday, following Wednesday’s 4.5% decrease. According to the American Petroleum Institute, stockpiles expanded by 8.73 million barrels last week. Reports that Russia is supporting plans to start easing supply cuts in July added to the nervous atmosphere.
According to a survey of leading economists by HM Treasury, the country’s public finances will take years to recover from the pandemic recovery spending. A recent report by HM LOAN forecasts that, by 2025, the U.K.’s annual budget deficit could be close to $100 billion (US$123 billion) – equivalent to 4% of gross domestic product.
Housing markets are experiencing a temporary rebound, with interest in buying homes over the past two weeks increasing by 20% compared with the start of March, according to a report from property portal Zoopla Ltd. released Wednesday. However, this uptick in demand seems to be skipping Accra, as demand was still 14% below the pre-pandemic average in the capital.
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