A fast-spreading virus outbreak is likely to hit the U.S. economy longer worse than anticipated, according to the S&P Global Ratings on its cut on the global forecast on Tuesday.
The Organisation for Economic Cooperation and Development warned that the epidemic has plunged global economy to its worst activity since the 2008 financial crisis. The organization called on central banks and governments to counter a potential deeper fall.
In an attempt to protect the world’s biggest economy from the virus outbreak, the U.S. Federal Reserve cut interest rates by half a percentage point to hit 1.00%-1.25% target range. On Tuesday, the Australian central bank also cut interest rates to a record low 0.5%.
S&P revised its U.S. GDP growth in the first quarter to 1% from 2.2% forecast before the epidemic, accompanied by recovery in the following quarters. S&P also estimated second-quarter growth to hit nearly 1%.
The impact to U.S. economy’s growth would reflect in five main channels: tourism and travel disruption, weakened global demand and demand from China, lower supply chains, weak commodity spending, and low commodity prices.
Oil traded higher on Friday, further reclaiming lost ground from three-week lows in the previous session as the COVID-19 situation continued to dent the global economy as well as oil consumption. Brent crude gained 0.3%, trading at $43.08 ...
The Bank of England will announce next week how quickly it expects the economy to recover from the coronavirus pandemic, but it is unlikely to add to the 100 billion pounds of the fiscal package it released in June. Britain’s economy ...
Asian shares recorded a turbulent session on Friday as weak economic data from the United States and surging coronavirus infections worldwide dragged market confidence. The decline followed despite upbeat U.S. tech gains and signs of rebound ...
The dollar was under pressure on Monday as the escalating U.S.-China tensions weighed on the market, while investors worried that the U.S. coronavirus resurgence could stall economic recovery. The dollar fell to a four-month low on the yen ...
Financial markets saw record heights earlier on Friday, with the Euro continuing its 21-month gain streak and gold prices hitting its highest level amid a weakened Dollar. The Euro soared above the Dollar by 1.7%, trading at $1.1616 for the ...