This archive report was first published on 9 June 2020.
On June 8, 2020, US stock markets closed higher, defying an announcement by the US National Bureau of Economic Research that the country had officially entered a recession.
The Dow Jones rose 1.70% at the closing session, with shares of Boeing surging by more than 12%, according to data from FX Pesa. The Nasdaq 100 continued its spectacular performance, closing at a record high, with shares of Tesla rising 7% to hit a record high.
However, the S&P 500 gained marginally, erasing the losses made during the year. The news of a potential economic relief package in July drove the markets higher, despite the recession announcement.
Major news highlights include the World Bank's June 2020 Global Economic Prospects report, which warned that the pandemic might bring about the deepest recession in decades since the second world war.
The report stated that the crisis will affect the global economy mostly 'through lower investment, an erosion of human capital through lost work and schooling, and fragmentation of global trade and supply linkages.'
Additionally, the Austrian Government has entered into an agreement to provide a bailout package totalling €600 million to the country's airline. The package includes €450 million from Austria and the rest from German giant Lufthansa, of which Austrian Airlines is a subsidiary.
Furthermore, Chinese E-Commerce company Alibaba Group has announced plans to hire about 5,000 additional staff for its cloud arm. The global program will run till the end of its financial year, which ends in March 2021.
Energy markets fell on Monday, despite an agreement over the weekend by OPEC and its allies to extend production cuts until the end of July. Meanwhile, Libya's largest oil field has resumed production after a five-month hiatus, adding more than 300,000 barrels of oil a day to the global market.
