Texas and California are setting record highs for infection of the Coronavirus
Leading physician, Anthony Fawcci, warns of the virus getting out of control.
Europe is showing signs of recovery
China starts arresting Hong Kong citizens after implementing the new National Security Law
Stocks open lower ahead of Institute of Supply Management data on manufacturing PMI.
Oil prices gain momentum with signs of falling supply and demand progress.
Here is the most important thing to know about global financial markets, today, July 1
1. California and Texas record record states
The number of new cases of coronavirus in Texas increased by 6,900 new cases, while in California, 8,441 new cases were recorded, according to Reuters. These figures illustrate the credibility of the statements made by Chief Physician Anthony Fuchi yesterday. Fauchi said the United States is losing control of the virus.
The President of the National Institute of Allergy and Infectious Diseases said that the United States is “going in the wrong direction,” and warned that new infections could reach more than 100,000 a day. His words came before the Fourth of July holiday, in which families meet, and thus increase the possibility of transmission.
All new cases come from California, Texas, Florida and Arizona, Fauchi said.
In a CNBC survey showing that the progress of the virus weakens President Trump’s chances of winning the next election in November.
2. Europe is recovering from the virus
Europe is witnessing positive data today after the collapse in the second quarter of this year.
The IHS Markit index of purchasing managers in the euro zone rose by 39.4, while the index recorded 47.4 this month. In the UK, the index rose above 50, indicating that the economy was receding. Bank of England economist Andor Haldene voted to increase bond buying programs and said the UK was advancing faster than expected.
Unemployment in Germany slowed in June, to record only 69,000, when expectations were 120,000. French car sales rose year on year for the first time.
3. US stocks are declining, and data is expected
US stocks in the third quarter got off to a negative start, with the spread of the Coruna virus and increasing tensions with China.
At 14:27 Saudi time, US indicators recorded the following moves:
Dow Jones 30 fell 232 points, or 0.90%.
S&P 500 down 0.63%
Nasdaq composite fell 0.46%
The fear of risk assets is evident in the stability of gold above $ 1,800 an ounce, and gold reaches this level for the first time since 2012 during Tuesday. The price of gold futures is now $ 1,795 an ounce.
Shares in focus today will be Construction Brands and General Mills for earnings reports. Today, the manufacturing index is released at 17:00 KSA and is expected to jump from 43.1 to 49.5 in June. The most important employment report (which is an up-to-date reading of what the markets are waiting for tomorrow) will also produce ADP.
4. China extends its hand extending to Hong Kong
Chinese police launched the first wave of detention in Hong Kong under the new law, which entered into force on Tuesday.
The government can pass life sentences against people under this law, and charges range from terrorism, sabotage, and sedition.
CNN says that the arrest of 70 Chinese citizens was linked to the protests, which were lower compared to the pro-democracy protests that took place before the Coruna epidemic.
5. Recovering oil, evidence is clear
Oil prices today gained bullish momentum after data showing a decline in exports from Iraq in June, and Iraq was the largest exceeding stake among OPEC + members.
Today, crude oil prices are $ 39.38 a barrel, while Brent oil is up about $ 41.89 a barrel.
Market sentiment was buoyed by the larger-than-expected decline in US oil stocks, according to the Petroleum Institute’s report released last night. The report assured the market that the recovery in demand is still continuing despite an increase in cases.
But we have to wait to see the report of the official authority, the Energy Information Administration, which is released today, and it is expected that the stock will drop from the increase recorded last week by 12.06 million barrels, to a decrease of 300,000 barrels.