As economies begin to reopen, investors are looking for signs of a second wave of coronavirus outbreak that could impact businesses again. According to data compiled by the New York Times, new infections continue to increase in more than a third of U.S. states. Officials are also wary of a spike in new cases as thousands of protesters across the country demonstrate against police brutality after the death of George Floyd.
European investors were weighing new data from Germany which showed a 17.9 percent drop in industrial production in April compared to the previous month, a record drop in Europe’s largest economy. In Britain, there was a glimmer of hope: The government would consider allowing pubs and restaurants to open for outdoor drinking and eating from June 22, earlier than expected.
On Friday, stocks got a boost after U.S. jobs figures came in much stronger than expected, showing employers added 2.5 million jobs in May. To date, the company’s 500-value index has increased by more than 2%, approaching the recovery of all its losses for 2020. Some investors are wondering how long governments will be willing to push the global economy, and how long it will take for global growth engines to return at full speed.
Here’s the business news to watch this week.
? Monday marks the first phase of the New York City reopens, with retailers, construction sites and manufacturers temporarily returning to business.
? Federal Reserve provides a set of updated economic forecasts Wednesday, as markets will find clues about how long interest rates will remain at historically low levels. Few expect increases before the end of 2022 at the earliest.
?? shares in Chinese online gaming company Netease start trading in Hong Kong on Thursday, as part of a secondary listing that could raise up to $3 billion. Another Chinese company trading in New York, the e-commerce giant JD.com, is expected to introduce a secondary listing in Hong Kong this week, amid growing tensions between Washington and Beijing that companies are worried about their access to capital in the United States.
? Among this week’s results reports, Tiffany could take stock of its takeover by Lvmh, in data released on Tuesday; AMC Entertainment, also on Tuesday, will reveal the extent of the damage caused by the pandemic blockades to the film company; and there will also be updates from Fluffy (Tuesday), Adobe (Thursday) and Lululemon (Thursday).