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The second half of the year seems to be difficult too. The number of new infections is growing in some US states. EU leaders continue to discuss Brexit issues. Here is news in detail:
1. COVID-19 is gaining momentum again
The US government has reported a new rise in the number of infected people with coronavirus. In one day, almost 20 thousand new cases were confirmed in the US. The epicenter of the disease is in Florida and Texas. In this regard, many US enterprises are shut down again.
2. Outlook for the beginning of the second half of the year
The second half of the year begins with the hope for a vaccine against coronavirus. In this regard, market bulls begin the second half with signs of economic recovery.
However, the market recovery will take a lot of time. The issue of increasing unemployment benefits in the United States after July 31 is being discussed. Also, the US presidential election will be held in November. The presidential race promises to be nervous, especially if Democrat Joe Biden remains the leader of the race. Besides, the EU should agree to approve a $750 billion eurozone economic recovery fund. At the same time, investors fear the weakening of stimulus measures, as problems may continue to arise.
3. Eurozone problems
EU leaders discuss a plan to restore the economies of the worst-hit countries. More than €1 trillion ($ 1.1 trillion) will be spent on this issue. Leaders also negotiate on the EU-UK relations after Brexit.
Moreover, a summit will be held on July 17-18. It is crucial for reaching an agreement on a restoration fund.
Germany wants to use the EU presidency to improve the European economy. An agreement on a recovery fund will certainly help. Markets hope that solidarity will prevail: the euro has grown by 5% since March, but investors' optimism may fade away, if disputes begin.
4. Difficult negotiations on Brexit
Last week, the Brexit negotiations did not end successfully. Serious disagreements arose between the parties. Michel Barnier believes that the British government is not interested in this process.
Negotiations will be held again this week, but success is hardly possible.
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