Fundamental Comment

European stocks mixed amid US protests, reopening economies

European stocks mixed amid US protests, reopening economies

European stock indexes were mixed during Monday’s trading, amid protests in the United States and the anticipation of a relative return of European economies.

As of 09:30 GMT, the Euro Stoxx 50 index slump 0.77 percent to trade near 3,070.60 points.

German DAX 30 index descended 1.65 percent and now settles near 11,586.85 points in May 29 as trading in the German market was suspended today due to a public holiday, while French CAC 40 reached 4,744.49 points, up 1.15 percent.

Britain’s FTSE 100 Index ascended to 6,136.80 points, bringing its surge today to about 1.02 percent.

European stock exchanges benefited from the reopening of most of the continent's economies and relatively reproducing.

However, investors are waiting for unrest, protests and marches in the United States following the death of George Floyd at the hands of Minneapolis police last weekend.

Governors of major cities such as Los Angeles, Philadelphia, Atlanta and at least 12 states imposed curfews, with the National Guard deployed in several states.

Moreover, political tensions between the United States and China continued after the Chinese government's criticism yesterday of US President Donald Trump's pledge to end Hong Kong's special status if Beijing imposes new national security laws on the city.

According to data released by Markit Economics today, the final reading of the PMI in the euro area rose to 40.6 in May from the April reading of 31.5.

Commodities

Gold prices soared during Monday's trading, in conjunction with security and political tensions in the United States.

At press time, spot gold hovered around $1,736.58 an ounce, where the precious metal touched its highest level during the session at $1,744.62, touching the highest level since May 22, witnessing a 0.44 percent increase.

The yellow metal benefited from protests across the United States over the death of American citizen George Floyd by a police officer, sparking a wave of public anger in the country.

Gold is seen as a safe haven in crises and political and geopolitical economic uncertainty, as well as an alternative investment to the US dollar.

Meanwhile, the dollar index, which measures the performance of six major currencies against the US dollar, traded lower at 98.13.

As for oil latest updates, prices fell on Monday’s trading amid continuing rising tensions between the world's two largest economies, after recording the biggest monthly gains in its history.

As of 09:50 GMT, West Texas Intermediate (WTI) crude futures traded at $35.19 per barrel, while the lowest level recorded during the session was at $34.77.

Brent crude reached $37.80 a barrel, while the lowest level recorded during the session was at $37.32.

Investors are waiting for a possible OPEC and its allies to meet later this week to discuss whether to extend record crude production cuts beyond the end of June.

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