The growing tension between Washington and Beijing over China’s response to the coronavirus epidemic, which later escalated into a global pandemic, is a cause for concern.
Donald Trump has accused China of waging a large-scale disinformation campaign, trying to divert attention from the “pain and massacre” for which the country is responsible by launching a “propaganda attack” against the United States and Europe.
A spokesman for China’s 13th National People’s Congress (NPC), Zhang Yesui, said his country would respond with countermeasures if the United States imposed sanctions on the coronavirus pandemic.
All of this raises new concerns about growing trade tensions between the world’s two largest economies, at a time when the global economy is on its knees over the coronavirus pandemic.
Today’s Wall Street trade is also negatively affected by another weak data on employment and unemployment in the United States in the last week and a continuing contraction in US business activity in May, although slightly more restrained than the bottom reached in April.
All three major US stock indexes started trading today with a decline of about 1% before parrying some of the initial losses.
The DJIA index fell 0.33%, the broad S & P500 index – 0.63% and the Nasdaq Composite – 0.64%, but after yesterday they ended with solid increases, as the Nasdaq hit a three-month high and the S & P500 index reached the highest -high level from March 6.
European stock markets also reacted negatively to US-China tensions and another weak data on business activity in the eurozone and the UK in May, which confirmed the serious damage the coronavirus crisis has done to the European and global economies.
The general European index Stoxx Europe 500 closed today’s trading with a decrease of 0.74%, the German DAX fell by 1.4%, the French CAC 40 – by 1.14% and the British FTSE100 – by 0.85%.
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