We begin the new week on the financial markets with yet another update on the coronavirus pandemic. The total number of Covid-19 patients has now reached 4.8 million globally. The United States is the home to roughly one third of the patients, with 1.5 million cases. During the weekend Russia overtook the United Kingdom and Spain, and is now the second most affected region in the world, with 290,000 confirmed Covid-19 cases.
It is suspected that the numbers are even higher but remain unconfirmed due to limited access to testing kits, an issue most prominent in the US where the health authorities have recommended testing millions of people per day for an accurate sample, but the government is testing far below this quota.
The World Health Organization is starting its annual meeting today, where the coronavirus will most definitely be the main topic of discussion. The meeting, however, started on the wrong foot since Taiwan, the country that has the best record for keeping Covid-19 in check, was not invited due to China’s opposition to Taiwan’s claim to independence.
Meanwhile, developed countries that already saw the peak of the outbreak are reopening their economies. This in turn is boosting stock markets across the globe, with most indices marking gains today.
In the United States, Federal Reserve Chairman Jerome Powell confirmed that the economic recovery of the country will be slow and may take until the end of next year. The Fed so far has denied speculation that it will push interest rates below zero to support the economy, something the Bank of England is considering at present.
Powell’s statements, plus the general anxiety about a second wave of the coronavirus pandemic are keeping safety assets in high demand. Gold, in particular, is shining bright and trading at seven-year maximums at the moment.
