rss

Rise in US coronavirus cases could unnerve markets at the open, but there are caveats

Big focus on a second US wave

Big focus on a second US wave
The market has turned its focus away from the reopening story and back to the virus; and the risk that even with the economy reopened, no one is going to show up.
The main theme at the moment is rising cases in a number of US states, along with growing cases in Latin America and India.
The US is a complicated picture. New York has drastically curtailed cases, which rose just 0.2% yesterday.
The fear is that numbers continue to climb elsewhere. Yesterday, total US cases rose 1.4%, which was the biggest jump so far in June. There are a handful of states showing an acceleration. Here’s a short list, with the % increase in cases yesterday:
  • California +2.3%
  • Texas +2.3%
  • Florida +3.6%
  • Louisiana +2.9%
  • North Carolina +3.4%
  • South Carolina +4.6%
  • Arizona +4.9%
Those are some of the most-populous states in the country but there are some important things to keep in mind. Florida, for instance, has 73.5K cases total, which is a fraction of the 382K in New York.
The weekend headline that got the most attention was the jump in Florida cases to 2581 from the previous day (also a record) of 1902. That looks like a dangerous escalation but Florida Governor Ron DeSantis has downplayed the rising totals, saying it reflected increased testing, isolated outbreaks in long-term care facilities along with more testing at prisons and among migrant farm workers.
Other virus news:
  • Iran on Saturday also reported 107 new deaths, which was its highest in two months.
  • Beijing locked down part of the city due to an outbreak
  • Saudi Arabia reported 4233 cases on Sunday, a record high
  • Tokyo reported 47 cases, the most since May 5. About half were traced back to nightclubs
  • Globally, the WHO reported 142,672 new cases Saturday, a record
  • UK stores are set to reopen on Monday
Overall, the virus theme is beginning to overwhelm the easy-money theme and fear is starting to creep back into markets. The bounce late on Friday was constructive but I expect we will start the week with a negative tone.

US confirms fifth case of coronavirus

A case in Arizona

Phoenix officials say a resident was diagnosed with coronavirus on Sunday.
Officials said the patient recently returned from Wuhan, China and is a member of the Arizona State University community who does not live in university housing.
They say he/she is severely ill and in isolation. They’re working with the patient to identify anyone who may have been in close contact or been exposed.
“While the immediate risk of the 2019 Novel Coronavirus to the general public is believed to be low at this time, ADHS and our county public health partners will continue to actively monitor for the disease,” said Dr. Cara Christ, ADHS director. “There are simple daily precautions that everyone should always take to prevent the spread of diseases.”
I’m starting to feel like this virus is targeting ForexLive. In the past 48 hours there have been cases in Toronto, Melbourne, Kuala Lumpur and now Pheonix. With that, the four of us will continue to never leave our homes and desks.