China tightens restrictions on Beijing for fear of the second wave of Corona virus outbreak, while Chinese soldiers at the border are facing deadly attacks from India in a new border dispute.
Conflicts break out again between the two Koreas
Stocks open modestly higher with Federal Reserve Chairman Jerome Powell testifying before Congress for a second day.
News from the travel and airline companies casts a shadow over the sector
European car sales recover modestly from April collapse.
Oil is awaiting updates from the United States and a look at updates from OPEC to the market
Here is the most important thing to know about global markets today, June 17
1. Beijing tightens restrictions with new outbreaks of Corona virus, and Vulci warns
The Chinese authorities have raised the alert in the capital, Beijing, to deal with the “severe” outbreak of the Coronavirus, illustrating the risks of a full return to normalcy and the devastation it causes.
Beijing closed: schools, universities, and entertainment centers, canceled 1,000 flights, and local authorities began quarantine rules for 3 days. While factories and shops are not closed yet.
The news came along with rising casualties in some US states such as Florida, Texas, and California. “All you have to do is look at the data, the facts to see that the epidemic has not ended in any way. The numbers speak for themselves,” said Anthony Fauchi, president of the National Institute of Allergy and Infectious Diseases.
US Vice President Mike Pines underestimated the second wave of infection and considered it an exaggerated panic, in an editorial he wrote in The Wall Street Journal.
2. A border dispute between China and India, and tension rising on the Korean border
Two of the largest countries are grappling with population density. At least 20 soldiers have died in a new conflict between the Indian and Chinese border forces, across the Himalayas, according to data from the armed forces of the two countries.
The clash came as Indian forces attempted to confirm China’s commitment to a commitment to evacuate disputed areas in the border areas.
In other Asian countries, North Korea has threatened to relocate its border forces in the demilitarized zone, with South Korea resuming “all usual military activities,” escalating tensions after targeting a building that was supposed to host peace talks between the two countries.
South Korea responded with a special warning. Relations between the two countries have worsened since the peace talks collapsed in 2018.
3. Shares are ready to open higher, but the travel sector is putting pressure on the market
American stocks are preparing to open trading today on modest profits, before the second day of the Federal Reserve Chairman’s testimony, before the US Congress.
Powell again warned of a hurry-and-slow recovery path on Tuesday, despite admitting the worst of the US economy has passed, and US retail sales data show this improvement for May.
At 14:49 KSA, the indices futures recorded the following moves:
Dow Jones 30 rose 174 points, up 0.65%
S&P 500 rose 18.50 points, up 0.61%
Nasdaq 100 scored 60.25 points, 0.61%
We are now focusing on the stock market on the Norwegian Shipping Company, whose largest brands are suspended until September, in an announcement issued yesterday’s close. Southwest Airlines may face some pressure as the company announces that the intermediate seats are left empty, due to the concerns of the Coruna virus and reduced efficiency.
4. Tesla and sales drop as European car sales improve
Tesla shares will be in the spotlight today, with indicators saying California sales fell 37% in April and May. The data came from a Dominion Enterprise source, highlighting the challenges facing the company’s sales momentum in one of its most important markets.
The news came at a time when car sales around the world were declining. Data from Europe on Wednesday shows an increase in new car registrations, and data indicate that the decrease in April was 70% compared to a year ago, while in May that figure fell to 53%. The increase was strong in Italy, with all sales disrupted during the first month of closure due to the epidemic.
5. Energy Information Administration and OPEC speak to the oil market
The government of the United States of America issues its monthly report on crude oil supplies at 17:30 KSA, and analysts estimate a drop of 152,000 barrels, but perhaps the market should prepare for some negative data after the American Petroleum Institute report yesterday, which clarified the increase in inventory.
Prior to this, OPEC issued a monthly report on the state of oil markets, and this picture is expected to clarify a little after yesterday’s report of the International Energy Agency. The Energy Agency revised upwards slightly. The Russian TASS agency sees a greater commitment from OPEC + member states, which still fail to adhere to what has been cut, and any failure to comply may negatively affect the Russian commitment.
Crude oil futures fell 0.8% to $ 38.06 a barrel, while Brent oil contracts fell 0.4% to $ 40.77 a barrel.