Investors shifted into haven assets as global COVID-19 cases continued to rise sharply in southern and western US states, as well as Latin America. Tokyo also saw a surge in new infections, whilst Hong Kong shut schools to control a fresh outbreak.

After record second-quarter returns, global stocks started July on a strong footing as better-than-expected US jobs data helped investors look beyond a sharp rise in new COVID-19 infections in the US and Latin America.

Global stocks slid on news of a sudden spike in COVID-19 cases in southern and western US states. Renewed trade friction between the US and Europe also knocked investor sentiment.

Global stock markets rebounded over the week, putting them on course for the best quarterly returns in a decade. This comes despite news of Germany and China suffering new COVID-19 outbreaks and a rise in US daily infections. Brazil and India also continued to see sharply rising COVID-19 infections. A cheap steroid, dexamethasone, was found to cut the death rate of the most seriously ill COVID-19 patients on ventilators by one-third, and by one-fifth in patients receiving oxygen. This is the first proven treatment for severe COVID-19 cases.

Global stockmarkets fell and bonds rose as investors were unnerved over the Fed’s gloomy outlook for the US economy, as well as signs that US cases of Covid-19 were rising in states in the south and west that have eased lockdowns.

Global stocks rallied amid growing optimism over economic recovery, overcoming concerns over rising racial protests and ongoing heightened tensions between Beijing and Washington. In contrast, global bonds retreated as yields rose amid waning risk aversion.

Travel and leisure stocks, among the worst hit since the coronavirus crisis began, rebounded as European economies started to re-open without any apparent second wave of infections. Tui shares rose 40% over the week, while Cineworld shares rose 45%. Many US states also eased lockdowns, with the number of daily US fatalities hovering around the lowest level in about two months.

Global equity markets rallied, helped by optimism over a Covid-19 vaccine, indications that central banks were prepared to offer more support and signs that economic activity had improved in countries that had eased lockdowns.

Global stocks were unsettled by renewed tensions between the US and China. Additionally, optimism about the relaxation of lockdowns across the US and Europe was tempered by new clusters of virus outbreaks in countries such as South Korea and China and central bank warnings of a protracted economic recovery.

Global stocks rallied, looking beyond dismal economic data, as Spain, Italy and India tentatively eased economic and social restrictions and let some businesses resume operations this week, while more US states began to lift lockdowns.