China also reported economic data, suggesting that the recovery of the world’s second largest economy is progressing slowly.
In China, meanwhile, signs of a new wave of the virus could stipulate an already slow economic recovery.
Industrial production, investment activity and retail sales improved compared to previous months, according to data released by China’s Central Bureau of Statistics on Monday. However, all three readings fell below the analysts’ predictions examined by Refinitiv.
“Finally, the will of consumers is to leave their apartments due to permanent social distancing – either from government mandates or due to consumer behavior – [that] it will dictate the speed of recovery, “wrote Stephen Innes, chief global markets strategist at AxiCorp, in a research note.” But the Chinese consumer-led recovery is not moving fast forward with any part of the imagination. “
Although some economists have pointed to positive signs. Activity in the country’s services sector expanded for the first time this year, according to China’s national industry service delivery index. The index measures changes in the production of the service sector every month.
“Total economic output returned above 2019 levels in May, for the first time since the Covid-19 epidemic,” wrote Martin Rasmussen, a Chinese economist in the capital economy, in a discussion of the study. “Earlier, we thought the Chinese economy would not return to positive year-on-year growth until [the third quarter]But today’s data suggests that a milestone could be reached in this quarter. “
The oil also went lower. U.S. oil fell 4.1% in the future, trading at $ 34.76 a barrel. Brent, the global oil benchmark, lost 3.4% to $ 37.49 a barrel. Brent and U.S. oil prices fell more than 8% last week amid concerns about a resurgence of the pandemic.
– Matt Egan and Anneken Tappe contributed to this report.