The second wave of corona virus terrifies the markets after reports of a rise in new cases in Beijing and Tokyo.
Concerns about the second wave of the Coronavirus cloud the hopes that Europe will return to open doors.
The US dollar is advancing against the currencies of emerging countries, with lower treasury yields
Stocks open lower
BP firm pessimistic outlook for oil and gas
Here’s what to know about financial markets today, Monday, 15 June.
1. Beijing and Tokyo are witnessing a rise in the number of coronavirus infections
The ghost of the Corona virus refuses to move away from the world. Beijing recorded more than 80 new cases of coronavirus during the weekend, after seven weeks without registering one new case. In most cases, it can be traced back to the popular fruit and vegetable market. The authorities responded by closing more than 12 residential neighborhoods.
Monday’s Chinese data shows permanent scratches on the economy from the aftermath of the Coronavirus. China’s retail sales fell 2.8% from a year ago, while expectations for only 2% fell. While industrial production increased by 4.4% compared to last year’s record, it is still below its forecast of 5.0%.
In Asia, the Japanese capital, Tokyo, recorded the highest number of cases a day, with 47 cases since May 5, and most cases could be traced to the bars and nightclubs that opened recently.
2. The dollar is stable and advances against emerging market currencies
The US dollar found a foothold against risk sensitive currencies on the back of new data from China.
The US dollar index measures the strength of the dollar against a basket of 6 major currencies, and rose to 97.38, before stopping a little to return to 97.175 at 13:30 KSA, falling 0.2%.
The Dollar was stronger against risk sensitive currencies, including all emerging market currencies. Meanwhile, US 10-year Treasury yields fell 0.65%.
3. Stocks are preparing to open lower
US stocks are preparing to open Monday, in response to new medical and economic news from China over the weekend. Concerns remain about the high incidence of the United States.
Futures fell for the index {{8873 | Dow Jones 30}} 558 points, or 2.2%, after recovering early losses. The decline in S & P 500 by 1.9%, while contracts fell Nasdaq 100 rose 1.5%.
Over the weekend, White House economic adviser Larry Kudlow said changes to the structure of government distributions to citizens affected by the Coruna virus must be made. In a CNN interview, Kudlow said that the $ 600 unemployment benefits should be reduced and redirected to exclude those who returned to work.
4. Europe is coming back firmly to open its doors
The new news about Corona virus was not completely bad. France lifted the state of emergency, lifted restrictions on people arriving from other European countries, and said schools would return to open on June 22nd.
In the United Kingdom, the authorities allowed the reopening, although the government maintained restrictions on social estrangement.
The chain of clothing stores, H&M, said the first half of June was 30% below the figure for the same month last year, compared to a 50% drop in May.
5. BP warns against writing off huge holdings due to the low oil prices
The fallout from the Corona Virus on the oil and gas market appears to be continuing for longer than expected, with the UK giant BP warning (LON:BPToday, from the write-off of assets ranging from $ 13 to $ 17.5 billion in the second quarter, to reflect its expectations for lower oil prices for a longer period of time.
BP said it expected “lasting repercussions” on global demand for both oil and gas, and many countries intend to favor renewable energy and limited carbon emissions, with demand recovering overall.
US crude futures, Nemax, fell 1.5% overnight to head towards $ 35.70 a barrel, in response to concerns about the second wave. Brent oil contracts fell to $ 38.41 a barrel.