A more timid approach to trading is happening on Thursday as markets digest strong gains from Wednesday. Fears of heightening US-China tensions and soft economic data are outweighing hopes for extra Fed stimulus and a joint-Euro area recovery fund.
Shares on Wall Street finished higher after Fed minutes opened the door to more policy stimulus- but the gains are not following through to Asia and Europe.
South Korea exports – a warning
A slump in South Korean in May is foretelling the kind of economic difficulty others can expect. Exports tumbled 20% May 1-20. The demand slowdown ran into a second month and serves to show the difficulty in returning to previous economic performance even as the worst of the pandemic passes. South Korea’s larger Northern neighbor China is likely to suffer a similar fate and that has big repercussions for the global economy. Even if you have the virus under control in your own country, if you’re exporting to countries that…