Europe’s fight with the coronavirus continues. New cases continue to appear in Italy, as well as Spain, which managed to become the second-most affected by the coronavirus country in Europe in just a week. Many are calling European economists to agree on double-guaranteed bonds to support the economy, but the measure is also facing much criticism and is viewed as a last resort by the likes of Germany. So far stimulus measures and increased government spending have been the key ways Europe has addressed the crisis.
Many countries have declared a state of national emergency and have asked their citizens to self-quarantine or practice social distancing when out in public. Though these measures are effective, the peak of the pandemic has likely not been reached yet.
The United States is struggling with deciding on the proper economic response to the coronavirus pandemic. Recently, $500 billion were set aside for dealing with the crisis as part of a bill prepared mostly by House Democrats. Then, the Republicans in the Senate decided to outdo their colleagues and proposed a $1 trillion spending bill to offer further financial assistance to households and businesses. However, the bill is facing criticism from the House of Representatives and its fate is uncertain.
Due to the lack of certainty as to government action to tackle the problem, US markets are still incurring losses. The pessimistic sentiment is also observed in Europe and Asia.
Oil prices also continue to fall due to OPEC+ abandoning its 4-year commitment to keeping production levels low, as well as the added pressure that the coronavirus is exerting on demand. The Brent today reached $25.87, while the WTI brand fell to $22.50 per barrel.
