· Dollar, yen jump after Trump tests positive for COVID-19
The dollar jumped and the safe-haven yen hit its highest level of the week on Friday after U.S. President Donald Trump said he tested positive for COVID-19 and entered quarantine
The news could cause a new wave of market volatility as investors brace for the hotly-contested presidential election in November.
The greenback rose about half a percent., while the yen was up roughly 0.3% at 105.27 per dollar. The yen made even larger gains against other currencies, amid a broad shift out of riskier assets and commodities.
The euro fell 0.3% to $1.1716.
· Jobless claims edge lower to 837,000 as slow recovery continues
First-time jobless claims totaled 837,000 last week, a decline of 36,000 from the week before.
This was the fifth consecutive week that claims were under 1 million after staying there for five months following the Covid-19-related economic shutdown in mid-March. However, the total is still well above anything the U.S. has seen since before the crisis.
· Consumer spending rose in August; economy on track for record Q3 growth
A report on Thursday from the Commerce Department showed consumer spending rose 1.0% in August after increasing 1.5% in July.
Personal income dropped 2.7% in August, reflecting a decrease in unemployment insurance benefits. A $600 unemployment subsidy ended in July and was replaced by a $300 supplement. Income increased 0.5% in July.
· Near-zero interest rates may be needed for up to 3 years, says Dallas Fed’s Robert Kaplan
Dallas Fed President Robert Kaplan told CNBC on Wednesday that it is likely appropriate to keep interest rates anchored near zero for up to three years to aid the U.S. economic recovery from the coronavirus pandemic. , while noting the Fed’s new policy of average inflation targeting is likely to mean lower interest rates even as unemployment rate falls.
· President Trump, first lady Melania test positive for coronavirus
President Donald Trump and first lady Melania Trump tested positive for coronavirus. Hope Hicks, one his closest aides, had tested positive for the virus Thursday. top adviser has traveled with Trump multiple times this week Trump’s diagnosis of Covid-19 came two days after his first debate with Democratic presidential nominee Joe Biden.
According to a declaration from Trump’s doctor, both the President and the First Lady strategy to stay in the White House as they recuperate while a medical group keeps a “vigilant watch” on them.
· China's U.S. envoy says U.S.-China relations must be put on right track
The Chinese ambassador to Washington said on Thursday that China’s relations with the United States were facing “severe difficulties” and the two countries should lose no time in putting them on the right track.
· Japan's consumer confidence improves in September: government
Japan’s consumer confidence improved in September, a Cabinet Office survey showed on Friday, prompting the government to upgrade its assessment on the index while warning the situation remained severe amid worries over the coronavirus.
The survey’s sentiment index for general households, which includes views on incomes and jobs, rose to 32.7 in September from 29.3 in August. In April, the index sank to a record low 21.6. A reading below 50 suggests pessimism.
· Japan's jobs market worsens in August as coronavirus damage persists
Japan’s unemployment rate rose in August to its highest in over three years and job availability fell to a more than six-year low, government data showed on Friday, indicating damage caused by the COVID-19 pandemic persisted through the month.
The figures come after new prime minister Yoshihide Suga pledged to protect jobs, keep companies in business and help the economy recover from the impact of measures taken to curb the spread of the novel coronavirus.
They also dull any optimism brought by recent data such as factory output and business sentiment which offered signs of economic recovery.
· Japan August household spending seen falling for 11th straight month: Reuters poll
Japanese household spending is expected to have fallen for a 11th straight month in August, a Reuters poll found on Friday, suggesting the coronavirus crisis is still weighing heavily on consumer confidence.
Analysts say the economy is rebounding gradually after suffering its worst post-war contraction in the second quarter, but the jobs and wage situation remain weak.
New COVID-19 cases in Japan have been on a general downward trend recently but appear to be levelling off.
Household spending likely fell 6.9 % in August from a year earlier, the poll of 14 economists showed, after a 7.6 % fall in July.
· Oil extends losses after Trump tests positive for COVID-19
Oil prices extended losses to about 3% on Friday after U.S. President Donald Trump said he has tested positive for COVID-19, while agrrement on a U.S. stimulus package eluded negotiators amid ongoing worries about demand.
Brent crude LCOc1 slipped on the Trump news and was down $1.12, or 2.7%, at $39.81 a barrel by 0710 GMT. U.S. oil CLc1 was also down $1.12, or 2.9%, at $37.60.
U.S. and Brent cruse are heading for drops of around 5% and 6% respectively this week for a second consecutive week of declines.
In a tweet, Trump said that he and First Lady Melania Trump tested positive for COVID-19.
Reference: Reuters, CNBC
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