This week the markets opened to yet another day dimmed by the spread of the coronavirus around the globe.
Last week the United States became the country with the most Covid-19 cases in the world, surpassing China. Today, the US has almost double the number of infected patients than China, approaching 150,000. President Trump officially announced that the current quarantine measures will stay in place at least until May. But as many scholar predict that the virus will continue spreading in the United States, it is likely that a further extension will be needed.
Europe is also wrestling with the heavy impact of the pandemic. Both Italy and Spain also surpassed China, now making them the second and third most affected countries, respectively, pushing China to fourth place. Germany might also reach China’s digits this week. Still, despite the pandemic and the worse than expected economic reports it has caused in Europe, the euro is holding its ground against other currencies.
Speaking of China, the country where the pandemic first began is still taking measures to stabilize its economy. The People’s Bank of China is preparing another stimulus plan and is allowing the yuan to drop in price.
Meanwhile, the oil market is still under a lot of pressure. It is in a state of oversupply, with producers such as Saudi Arabia and Russia showing no sign of slowing down their massive oil production. The price of Brent crude dropped to $25.16, while the WTI sank to $20.52. A further decrease, even below the level of $20 per barrel, remains possible.
