China also reported on the economic data, noting that the recovery in the world’s second largest economy was slow.
Meanwhile, in China, signs of another wave of the virus could exacerbate an already slow economic recovery.
Industrial production, investment activity and retail sales improved somewhat from previous months, according to data released by the Chinese National Bureau of Statistics on Monday. However, all three readings fell below the expectations of Refinitiv’s analysts.
Ultimately, the consumer’s desire to leave their apartments amidst ongoing social exclusion – either with government authorization or through consumer behavior – [that] “It will determine the speed of recovery. But the consumer-led recovery in China is not moving fast forward with any degree of imagination,” Stephen Ennis, chief global strategist at Axecorp, wrote in a research note.
However, some economists pointed to positive signs. Activity in the country’s service sector expanded for the first time this year, according to the China National Manufacturing Industry Index for the service industry. The index measures the change in the output of the services sector every month.
Martin Rasmussen, Chinese economist at Capital Economics, wrote in a research report: “General economic output returned above 2019 levels in May for the first time since the outbreak of Covid 19”. We previously believed that the Chinese economy would not return to positive growth on an annual basis until [the third quarter]. But today’s data indicates that this achievement may be reached in this quarter. “
Oil also fell. U.S. oil futures fell 4.1%, to trade at $ 34.76 a barrel. Brent, the global oil index, lost 3.4% to $ 37.49 a barrel. Brent crude and the United States fell more than 8% last week amid fears of a return of the epidemic.
Matt Egan and Ankeny Tappy contributed to this report.