· Dollar edges higher as virus worries sap risk appetite
The U.S. dollar inched higher against a basket of currencies on Tuesday, holding above the near two-week low hit in the previous session, as investors turned uneasy over new coronavirus flare-ups and local lockdowns in some countries.
The U.S. Dollar Currency Index, which measures the greenback’s strength against six major currencies, was 0.03% higher at 96.774. On Monday, the index had fallen as low as 96.565 with its 50-day moving average slipping below its 200-day average, viewed as a bearish signal.
The dollar, viewed as a safe haven, benefits when investors bail on riskier assets.
· 10-year Treasury yield falls slightly amid rising coronavirus cases
Long-maturity bond yields dipped on Tuesday as Investors continued to grapple with a continuous rise in coronavirus cases in the U.S.
The yield on the benchmark 10-year Treasury note was slightly lower at 0.663% and the yield on the 30-year Treasury bond was also down at 1.423%. Yields move inversely to prices.
· CORONAVIRUS UPDATES:
Ø Global cases: More than 11.94 million
Ø Global deaths: At least 545,607
Ø U.S. cases: More than 3.096 million
Ø U.S. deaths: At least 133,956
- Covid-19 hospitalizations in the U.S. continued to rise on Monday. While deaths nationwide have remained low, health officials, including White House health advisor Dr. Anthony Fauci, have warned deaths can lag hospitalizations and could still increase.
U.S. health official Anthony Fauci said on Monday that the current state of the COVID-19 outbreak in the United States “is really not good.”
- WHO says coronavirus deaths could start to rise again after cases accelerated in recent weeks, shouldn’t ‘be a surprise’
It shouldn’t “be a surprise” if the global death toll from the coronavirus begins to pick up pace again as the pandemic shows signs of accelerating across the globe, World Health Organization officials said Tuesday.
For the month of June, reported Covid-19 cases around the world have accelerated while the death toll has been falling, Dr. Mike Ryan, executive director of the WHO’s emergencies program, said at a news conference at the agency’s Geneva headquarters.
However, WHO officials warn that there’s a lag between rising cases and increasing deaths. It takes weeks after contracting the virus to fall seriously ill and potentially die from the coronavirus.
- More than 2.93 million coronavirus cases have been confirmed in the U.S. along with at least 130,306 deaths, according to Johns Hopkins University. Over the weekend, more than 20 states reported a hospitalization growth rate of at least 5%
- Coronavirus strains Florida health system as some hospitals run out of ICU beds in largest counties
More than 40 Florida hospitals in multiple counties across the state have maxed out their ICU capacity or are close to running out of intensive care beds as the coronavirus outbreak across the Sunshine State worsens, according to the state’s Agency for Health Care Administration.
As of Tuesday, more than 5,000 Florida patients were using roughly 83% of the state’s more than 6,000 ICU beds, according to Florida’s health agency, which is responsible for licensing the state’s health-care facilities. That leaves a little more than 1,000 free ICU beds, compared with nearly 1,400 available ICU beds less than three weeks ago, according to CBS’ local affiliate WTSP.
Overall, the state’s hospitals are now running at 78% capacity, according to AHCA. ICU beds are running out at several hospitals in some of the state’s most-populated counties, including Miami-Dade County, Orange County, Hillsborough County and Broward County, which are respectively home to Miami, Orlando, Tampa and Fort Lauderdale.
- Texas says new coronavirus cases jumped by more than 10,000 for the first time
The Texas Health and Human Services Commission reported 10,028 new cases, which surpasses the state’s previous record of nearly 8,260 cases set on July 4. It’s the first time since the beginning of the outbreak that the state has reported more than 10,000 additional new cases in a single day.
- Atlanta Federal Reserve President Raphael Bostic also told The Financial Times the U.S. economic recovery will be “bumpier” as coronavirus cases continue to rise.
- Positive news on the coronavirus front gave the market a boost earlier on Tuesday. The U.S. government awarded drugmaker Novavax a $1.6 billion contract to develop a coronavirus vaccine, the biggest amount yet granted under the White House’s “Operation Warp Speed.” Novavax shares were up 37%.
· Fed’s Mester says economic growth ‘leveling off,’ sees more help needed
Cleveland Federal Reserve President Loretta Mester said activity is slowing in her region due to rising coronavirus cases, and she sees more policy help necessary to help the economy through the pandemic.
Speaking to CNBC in a live interview Tuesday, the central bank official echoed comments from her Atlanta counterpart, Raphael Bostic, who also said he sees a rougher road to recovery.
“I think we’re seeing the same thing,” Mester said on “Closing Bell.” “We saw a reopening in May and activity starting to come back pretty well. Over the past week or so, there’s been some leveling off, and I think it’s probably due to the increase in cases not only in Ohio but across the country.”
· Oil moves lower as Covid-19 cases spark demand fears
Oil prices fell on Tuesday amid concerns that a surge in new coronavirus cases, especially in the United States, will hamper any recovery in fuel demand.
Brent crude futures declined by 24 cents, or 0.56%, to $42.86. West Texas Intermediate crude futures fell 1 cent, or 0.02%, to settle at $40.62 per barrel.
“Oil prices are lower today on concerns that the surge in coronavirus cases in the U.S. will limit a recovery in fuel demand,” RBC said.
Sixteen U.S. states have reported record increases in new COVID-19 cases in the first five days of July, according to a Reuters tally.
Reference: CNBC, Reuters, Worldometers
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