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· Dollar set for small weekly gain on safe-haven demand Reuters

Fears of a second wave of coronavirus infections have increased demand for safe-haven assets, putting the U.S. dollar on track on Friday for its best weekly gain in a month.

Markets this week have been focused on an uptick in coronavirus cases in many U.S. states, as well as new infections detected in Beijing, raising fears of a return to global lockdowns.

The world’s reserve currency, which made small advances in the North American session, has gained 0.51% this week against a basket of currencies, its best performance since mid-May.

The dollar was up 0.18% near midday to 97.61, close to its highest levels since June 2.

The euro was slightly weaker, down 0.12% at $1.119, as an EU summit, in which the bloc will seek to bridge regional divisions over a 750 billion coronavirus recovery fund, got underway. European Central Bank head Christine Lagarde told EU leaders that their economy was in a “dramatic fall” and called on the bloc to act to spearhead revival, diplomatic sources and officials said.

· Fed officials signal rising caution on U.S. economic recovery amid virus spread

Two U.S. Federal Reserve officials sounded increasing pessimism on Friday on the swiftness of any economic recovery from the novel coronavirus epidemic and warned the unemployment rate could rise again if the disease is not brought under control.

- U.S. economy will likely need more support, Fed's Rosengren says

The continued spread of the novel coronavirus could hamper the U.S. economic rebound from the pandemic, and more fiscal and monetary support will likely be needed, Boston Federal Reserve President Eric Rosengren said on Friday.

Rosengren repeated his view that the U.S. unemployment rate will likely be “at double-digit levels” at the end of 2020 and cautioned against reopening the economy too quickly after the end of lockdowns aimed at containing the virus.

- Fed's Kashkari says U.S. economic recovery could take longer than hoped

The economic recovery from the crisis spurred by the novel coronavirus could proceed more slowly than policymakers initially anticipated, potentially including a second wave of infections in the fall and another increase in the unemployment rate, Minneapolis Federal Reserve Bank President Neel Kashkari said on Friday.

“The recovery will take longer than we had hoped only a few months ago,” Kashkari said during a Twitter chat moderated by CBS News. “Many jobs are going to take a long time to come back.”

· WHO reports record daily increase in coronavirus cases

The World Health Organization reported a record increase in global coronavirus cases on Sunday, with the total rising by 183,020 in a 24-hour period.

The biggest increase was from North and South America with over 116,000 new cases, according to a daily report here Total global cases are over 8.7 million with more than 461,000 deaths, according to the WHO.

The previous record for new cases was 181,232 on June 18.

· Brazil passes 50,000 coronavirus deaths as outbreak worsens

Brazil, the world’s No. 2 coronavirus hot spot after the United States, officially passed 50,000 coronavirus deaths on Sunday, a blow for a country already grappling with more than 1 million cases, rising political instability and a crippled economy.

Brazil now has a total of 1,085,038 confirmed cases and 50,617 deaths, up from 49,976 on Saturday, the Health Ministry said. Experts say the true numbers are a lot higher because of a lack of widespread testing. Latin America’s largest country has typically recorded more than 1,000 deaths a day, but usually registers fewer on the weekends.

· German region risks lockdown if coronavirus outbreak not contained: premier

The Germany region of North Rhine Westphalia faces the threat of a renewed coronavirus lockdown amid a spiralling outbreak at a major slaughterhouse, the region’s premier said on Friday.

The outbreak near Gutersloh was first reported on Wednesday, when 400 workers were tested positive. By Friday, that number had doubled to 803, Premier Armin Laschet said.

· Trump says he will announce visa restrictions Sunday or Monday: Fox News interview

President Donald Trump said on Saturday he would announce new restrictions on visas within a couple of days to block the entry of certain foreign workers and protect Americans struggling with a job market devastated by the coronavirus pandemic.

· U.S. rejects Chinese airlines' request for additional flights

The United States on Friday rejected a request by Chinese airlines for additional weekly flights between the two countries, but said the decision was not meant to escalate tensions over travel restrictions.

In a statement, the U.S. Department of Transportation said the decision was made to “maintain the parity” in scheduled passenger services between the two countries, adding it was willing to review the decision if Chinese aviation authorities adjusted their policies affecting U.S. carriers.

· UK's Johnson to announce lockdown easing plans on Tuesday

Prime Minister Boris Johnson will unveil the latest easing of Britain’s coronavirus lockdown on Tuesday when he will also announce the conclusion of a review into whether a two-metre rule on social distancing should be relaxed, his office said.

Britain’s economy has been hammered by the lockdown to stop the spread of COVID-19 and although non-essential retailers were allowed to reopen last Monday, many businesses, particularly in the hospitality and leisure sectors, have remained closed.

· Italy PM says budget deficit likely to rise further amid pandemic

Italy’s budget deficit, currently projected to reach 10.4% of domestic output this year, is likely to expand further as the country tries to prop up the economy amid the coronavirus pandemic, Prime Minister Giuseppe Conte said on Sunday.

· EU wants new deal with Brexit Britain, but "not at any cost"

The European Union is committed to reaching an agreement with Britain on their new relationship after Brexit - but not at any cost, the bloc said on Friday.

EU chiefs Charles Michel and Ursula von der Leyen briefed the 27 national leaders on Friday on the latest talks with Britain, which have made precious little progress since London left the bloc in January, and now face an end-year deadline.

· EU leaders agree to extend economic sanctions against Russia

European Union leaders agreed on Friday to extend until the end of January next year their economic sanctions against Russia over its 2014 annexation of Crimea and the turmoil in eastern Ukraine.

The EU hit Russia’s energy, financial and arms sectors over Moscow’s role in the conflict in Ukraine, and prolonged them repeatedly as the Kremlin vows not to return the peninsula to Kyiv and a frozen conflict has taken hold in Ukraine’s east.

· China likely lost at least 40 soldiers in border clash: Indian minister

China lost at least 40 soldiers in a clash with India at their disputed border this week, a federal government minister has said, as the nuclear-armed countries remained locked in confrontation on the frontline on Sunday.

China has not said anything about any losses in the hand-to-hand combat that took place in the heavily contested Galwan Valley in the western Himalayas, in which 20 Indian soldiers were killed and at least 76 injured.

· North Korea prepares anti-South leaflets amid heightened tensions

North Korea is gearing up to send propaganda leaflets over its southern border, denouncing North Korean defectors and South Korea, its state media said on Saturday, the latest retaliation for leaflets from the South as bilateral tensions rise.

· Oil jumps 2%, posts seventh positive week in eight on supply cut optimism

Oil prices rose on Friday but pulled back sharply from early highs on concerns that continued spread of the novel coronavirus could stall the United States’ economic rebound.

Crude benchmarks followed other assets lower, pulling back from session highs after Boston Federal Reserve President Eric Rosengren said more fiscal and monetary support for the U.S. economy will likely be needed.

Rosengren repeated his view that the U.S. unemployment rate will likely be “at double-digit levels” at the end of 2020 and cautioned against reopening the economy too quickly after the end of lockdowns aimed at containing the virus.

Brent crude rose 61 cents to $42.12 a barrel, after trading up to $42.92 a barrel and then briefly turning negative. West Texas Intermediate crude futures gained 2.34%, or 91 cents, to settle at $39.75 per barrel.

The highs early in the session came after Iraq and Kazakhstan, during a meeting of an OPEC+ panel on Thursday, pledged to comply better with oil cuts, sources said. This means curbs by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, could deepen in July.

Reference: CNBC, Reuters, Worldometers