Good afternoon, it is 11th June 2020 and here is your economic and market update from BlackBee.
Today we focus on:
- Fears of second wave of Covid-19 across the US
- US employment recovery likely to take years getting back to pre-crisis levels according to Fed
The US economy has reopened and mass protests are taking place across the country. Fresh worries for the economy are now coming to light with concerns a second wave of coronavirus has started in parts of the country. Figures show a new increase of cases in states across the US, most noticeably Florida, Texas and California. Florida reported 8,553 new cases this week. This is the most cases Florida has seen in any seven day period. California has seen a 40% rise in cases over the last week and on Wednesday Texas recorded its highest one-day number of cases. A resurgence of coronavirus cases will further harm an already delicate economy if it is forced to shut again.
The Fed has suggested that it will take years to bring the number of unemployed back down to pre-crisis levels. It stated that they are not even considering raising rates and have forecast that they will keep interest rates near 0 until 2022. Interest rates will not increase until they are confident that the economy has weathered the crisis. The dovish tone was clear throughout the announcement with the Fed looking to stimulate the economy. They expect the US economy to contract by -6.6% this year and for unemployment to fall from 13.3% to 9.3%.
Best & Worst Performers of Large Cap Stocks on Wednesday
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Global Market Update
(as at close of markets 10/06/2020)