Ø US cases: At least 1,725,275 (+19,049) and deaths: 100,579 (+774)
Ø Spain cases: At least 392,360 (+15,691) and deaths: 24,549 (+1,027)
Ø UK cases: At least 362,342 (+8,915) and deaths: 3,807 (+174)
Ø Thailand cases: At least 3,045 (+3) and deaths: 57
· Dollar dented as risk appetite ramps up
The U.S. dollar fell across the board on Tuesday as optimism about a potential coronavirus vaccine and a reopening world economy helped investors shrug off Chinese-U.S. tensions, sapping demand for safe-haven assets.
The U.S. Dollar Currency Index, which measures the greenback’s strength against six other major currencies, was 0.77% lower at 98.968, after slipping as low as 98.949, its weakest since May 1.
Investors’ increased appetite for risky assets sent stock markets across the globe higher, and commodity markets rallied.
The S&P 500 index rose above the 3,000 level for the first time since March 5, as U.S. biotech corporation Novavax Inc became the latest company to join the race to test coronavirus vaccine candidates on humans and enrolled its first participants.
Data on Tuesday showed U.S. consumer confidence nudged up in May, suggesting the worst of the novel coronavirus-driven economic slump was potentially in the past as the country starts to reopen.
The dollar has remained in a narrow range since the end of March.
· Stimulus will add to high debt levels but alternative is ‘much worse,’ ECB vice president says
The vice president of the European Central Bank (ECB) has backed the unprecedented stimulus packages launched in the region, saying there were no alternatives for lawmakers.
Governments from euro area countries have passed major stimulus efforts in a bid to soften the impact of the coronavirus crisis and keep people in work. Fiscal deficits are expected to widen, debt piles will climb and the financial repercussions could be felt for generations.
However, Luis de Guindos, the vice president of the euro zone’s central bank, said the issue of lofty debt levels needs to be put into perceptive.
“At the end of the pandemic for sure that we will have higher public debt ratio. But the alternative of doing nothing is much worse,” he told CNBC’s Annette Weisbach when asked specifically about Italy.
“It would be much worse in terms of the crisis. And it would be much worse in terms of the recovery phase,” he added.
· World economic prospects darken, rebound delayed: Reuters poll
Economic prospects for the developed world this year have darkened again in the past month as the coronavirus pandemic has rolled from Asia to the Americas, with a V-shaped sharp recovery expected by less than one-fifth of economists polled by Reuters.
With many countries starting to ease lockdown restrictions imposed to stop the spread of the virus, which has infected over 5.5 million people globally, equity markets are rallying on hopes for a swift return to health and prosperity.
But the trough in economic activity will be deeper and the rebound is likely to take longer than predicted just a short time ago, in part because the pandemic is spreading across the globe in stages and arriving in countries at different times.
Reuters polls of more than 250 economists taken over the past few weeks showed recessions in most major economies would be deeper this year than previously predicted.
· Japan government to include $302 billion in spending under second extra budget - Mainichi
Japan’s government plans to include 32.5 trillion yen ($302 billion) in direct spending under a second extra budget to be compiled on Wednesday to cushion the economic blow from the coronavirus pandemic, the Mainichi newspaper reported.
The amount will exceed the 25.6 trillion yen appropriated under the first extra budget, in a sign of the magnitude of the damage that the pandemic has inflicted on the economy.
· Oil jumps more than 3% as faith in supply cuts grows
Oil prices rose on Tuesday, supported by growing confidence that producers are following through on commitments to cut supplies and as fuel demand picks up with coronavirus restrictions easing.
Brent crude futures gained 64 cents, or 1.8%, to settle at $36.17 per barrel. West Texas Intermediate crude futures gained $1.10, or 3.3%, to settle at $34.35 per barrel.
The Organization of the Petroleum Exporting Countries and other leading oil producers including Russia, a group known as OPEC+, agreed last month to cut their combined output by almost 10 million barrels per day in May-June to shore up prices and demand, which has been hit by the coronavirus pandemic.
Russian Energy Minister Alexander Novak is due to meet oil major producers on Tuesday to discuss the possible extension of the current level of cuts beyond June, sources familiar with the plans told Reuters.
The RIA news agency said Russian oil production volumes were near the country’s target of 8.5 million bpd for May and June.
On Monday, Russia’s energy ministry quoted Novak as saying that a rise in fuel demand should help to cut a global surplus of about 7 million to 12 million bpd by June or July.
OPEC+ countries are due to meet again in early June to discuss maintaining their supply cuts to shore up prices, which are still down about 45% since the start of the year.
Reference: CNBC, Reuters
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