· Dollar, safe-haven currencies buoyed by U.S. coronavirus anxiety
The dollar and other safe-haven currencies gained against their riskier peers on Friday after a surge in new coronavirus infections in the United States further undermined the case for a quick turnaround in the economy..
More than 60,000 new COVID-19 infections were reported across the United States on Wednesday, the greatest single-day tally by any country in the pandemic so far, discouraging some American consumers to return to public spaces.
Thursday’s weekly data showed the number of Americans filing for initial jobless benefits dropped to a near four-month low last week. Still, with companies from retailers to airlines announcing job cuts and furloughs, the outlook remained highly uncertain.
The caution helped to push up the dollar index .DXY about 0.1% in Asia to 96.863 from near one-month low of 96.233 touched on Thursday.
The safe-haven yen hit a two-week high against the dollar, rising to 107.00 per dollar JPY=.
The euro shed 0.1% to $1.1273 EUR=, slipping back from a one-month high of $1.1371 on Thursday.
The Australian dollar lost 0.3% to $0.6942 AUD=D4, off Thursday's one-month high of $0.7001.
· U.S. sanctions highest ranking Chinese official yet over Uighur rights
The United States on Thursday imposed sanctions on the highest ranking Chinese official yet targeted over alleged human rights abuses against the Uighur Muslim minority, a move likely to further ratchet up tensions between Washington and Beijing.
Washington blacklisted Xinjiang region’s Communist Party Secretary Chen Quanguo, a member of China’s powerful Politburo, and three other officials. The highly anticipated action followed months of Washington’s hostility toward Beijing over China’s handling of the novel coronavirus outbreak and its tightening grip on Hong Kong.
A senior administration official who briefed reporters after the announcements described Chen as the highest ranking Chinese official ever sanctioned by the United States.
· Outbreak of dengue fever in Southeast Asia is ‘exploding’ amid the coronavirus fight
Southeast Asia is seeing “exploding numbers” of dengue fever cases, according to Dr. Leong Hoe Nam, a Singapore-based infectious diseases physician at Mount Elizabeth Novena Hospital.
Singapore’s National Environment Agency (NEA) said last week that the island nation is set to surpass its previous annual record number of 22,170 dengue fever cases in 2013. As of July 6, more than 15,500 dengue cases have been reported in Singapore, according to the NEA.
With health-care systems already under strain due to the coronavirus pandemic, countries like Singapore, Malaysia and Thailand are also grappling with another infectious disease outbreak: dengue fever.
· Joe Biden proposes a $700 billion-plus ‘Buy American’ campaign
Biden calls for a $400 billion, four-year increase in government purchasing of U.S.-based goods and services plus $300 billion in new research and development in U.S. technology concerns.
Biden is proposing tightening current “Buy American” laws that are intended to benefit U.S. firms but can be easily circumvented by government agencies.
Biden calls for a $400 billion, four-year increase in government purchasing of U.S.-based goods and services plus $300 billion in new research and development in U.S. technology concerns
· ECB Seen Boosting Stimulus by December to Aid Fledgling Recovery
Most economists expect officials to hold policy on Thursday
The European Central Bank isn’t done expanding its bond-buying program yet, according to economists, despite recent remarks by policy makers that the outlook has brightened slightly.
More than half of respondents in a Bloomberg survey predict an increase in the ECB’s 1.35 trillion-euro pandemic purchase program ($1.5 trillion) by December, with most expecting an extension and a top-up of 500billion euros. The Governing Council is seen keeping its policy unchanged when it meets next week.
· Japan Pushes Re-Opening as New Virus Cases Reach Record in Tokyo
Japan is forging ahead with further steps to re-open the economy even as daily coronavirus cases continue to climb, with reporting a daily record of 243 infections on Friday.
Tokyo confirmed a daily record of 243 cases on Friday, Governor Yuriko Koike told reporters. That surpasses the daily record of 224 cases on Thursday and is higher than any daily reported cases during the state of emergency.
The country will begin allowing events of up to 5,000 people, including sporting events and musical concerts
Japan is also moving toward discussions with some countries on gradually lifting strict travel bans that remain in place, according to local media reports.
· BOJ to hold fire, stick to cautious optimism on economic outlook
The Bank of Japan (BOJ) is set to keep monetary policy steady next week and offer a cautiously optimistic view on the economic outlook, signaling it has taken enough steps for now to cushion the blow from the coronavirus pandemic, sources told Reuters.
At a two-day rate review ending on July 15, the BOJ is expected to hold off on expanding stimulus and leave unchanged its short- and long-term interest rate targets after having ramped up stimulus in March and April.
· Oil declines as U.S. virus cases hit record, heading for weekly fall
Oil prices fell on Friday, adding to steep losses from the previous session, and were headed for weekly declines on worries that renewed lockdowns following a surge in coronavirus cases in the United States and elsewhere could suppress fuel demand.
Brent crude LCOc1 was down by 73 cents, or 1.7%, at $41.62 a barrel by 0712 GMT after falling more than 2% on Thursday. U.S. oil CLc1 fell 83 cents, or 2.1%, at $38.79 a barrel after a drop of 3% in the previous session.
Brent looks set for a weekly decline of nearly 3% and U.S. crude for a fall of around 4.5%. Trading was quiet with Singapore on holiday for an election.
Reference: CNBC, Reuters
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