The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
German economy tacks on
In the second quarter, all of the sectors of the German economy managed to ascend, as data disclosed, with firm domestic activity helping to soften risks to exports given rather an uncertain global trade outlook.
State spending and construction expanded the most, both rallied by about 0.6% quarter on quarter. However, the head of one economic institute told that a record public sector surplus suggests that government investments need to be increased faster.
On Friday, the Federal Statistics Office figures that actually matched a preliminary overall surge outcome of 0.5% confirmed the EU’s leading economy’s soaring reliance on domestic drivers.
As a matter of fact, private consumption extended its surge run to six straight quarters, demonstrating steady dips in unemployment during what has been a long period of economic revival.
The given leap has powered criticism of the German government by its euro zone partners for not backing their economies by allocating more of its budget surplus for investments.
After the data also disclosed the overall public sector surplus edged up to a record maximum of 48.1 billion euros in the first half of 2018, the president of the DIW economics institute openly underpinned more investments.
The German economy has traditionally been export-oriented. In recent quarters, that sector's prominence has gone down, and trade clashes between America and its largest trading partners, including the European bloc diminishes its influence further.
Imports tacked on by up to 1.7% in the second quarter. At the same time, exports managed to add 0.7%, ending up with net trade diving by nearly 0.4% from surge.
Last month, US leader, who has slapped duties on aluminum and steel imports from the European block, agreed to postpone slapping tariffs on vehicles imported from the EU, while the two parties negotiate over other trade issues.
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Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.