Global stocks rallied last week as investors ignored the rising tensions between the United States and China. Instead, they focused on the recovery of the global economy as more countries start to reopen following lockdowns. All the key indices in Europe, Asia, and North America rose by more than 2%.
Similarly, base metals like copper and nickel also did well mostly because of the better manufacturing and services PMI data from China, the US, and Europe. These numbers showed that demand was slowly rising. The price of crude oil continued to rally and is now trading at the highest level in three months as demand increases while producers are slashing production. On the other hand, gold and silver were under pressure as money rotated back to stocks.
The US dollar declined sharply last week as its demand worsened. The dollar index declined by more than 2% while currencies like the Australian dollar, euro, and pound had their best weeks in months. But it pared back some of the losses on Friday when the Bureau of Labour Statistics released better-than-expected NFP data.