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Brent sheds 4% on fears of second coronavirus outbreak

Economies.com
2020-06-15 12:46PM UTC

Brent crude continued to fall as the US market open on Monday, to fall near its 2-week low, on fears over a second wave of the coronavirus infections, which ebb hopes about the recovery of the global oil demand.

 

Brent crude fell 4% to $37.26 a barrel, after it opened at $38.78, and hit an intraday high of $38.78.

 

Brent futures rose 1.7% on Friday, within a breather after diving to  2-week low of $37.03.

 

Oil prices have also lost 7% during the past week, posting the first weekly loss since mid-April, on renewed concerns over the US demand, and Saudi Arabia's remarks about canceling its voluntary output cuts after June.

 

A new wave of coronavirus infections emerged in the Chinese capital, Beijing, sparking fears about a second wave of the outbreak, especially as the virus first appeared in Wuhan last year.

 

The number of coronavirus cases also started to rise again in the US, over the weekend, with more than 25,000 new confirmed cases on Saturday.

 

This raised market's fears, especially the oil market, following its recent gains based on hopes of the global demand recovery, after many countries relaxed their lockdown restrictions and reopened their economies.

Dollar continues to rally on liquidity crunch worries

Economies.com
2020-06-15 12:35PM UTC

The US dollar rose against most majors on Monday, extending gains for the third straight day, as investors rushed to obtain dollar funding amid renewed liquidity crunch fears following sharp drop in most stock markets due to fears over a second coronavirus outbreak.

 

The dollar index rose more than 0.3% to 97.39 points, after it opened at 97.09, and hit an intraday low of 97.03.

 

The index rose 0.3% on Friday, posting the second straight daily gain, and rebounded from the 3-month low of 95.72 points.

 

The greenback has gained 0.15% during the past week, posting its first weekly gain in a month, on safe-haven buying.

 

Most global stocks and bonds plunged on Monday, as the European stock indices slumped to 3-week lows, and the US indices lost more than 3% ahead of Wall Street opening, due to renewed fears a new coronavirus wave, after a large number of new cases emerged in the Chinese capital, Beijing, and a surge in new cases in the US.

 

In the first coronavirus epicenter, China, the government declared a state of emergency in a Beijing suburb, after a surge of new infections around a wholesale food market.

 

Similarly, the number of coronavirus cases started to rise again in the US, over the weekend, with more than 25,000 new confirmed cases on Saturday alone.

Gold drops 1.5% as investors rush to dollar

Economies.com
2020-06-15 11:07AM UTC

Gold prices fell on Monday, to head for the second daily loss in 3 days, as investors rushed to obtain dollar funding amid renewed liquidity crunch fears following sharp drop in most stock markets.

 

Gold prices fell 1.5% to $1,707.92, after opening at $1,733.28, and hitting an intraday high of $1,735.75.

 

The yellow metal gained 0.3% on Friday, after losing 0.6% on Thursday on profit taking from a week high of $1,744.77.

 

Gold has gained 2.6% during the past week, posting its first weekly gain in a month, on strong safe haven buying, following a gloomy global economic outlook.

 

The US dollar index rose by 0.3%, extending its gains for the third straight day, which weighed down on gold and other dollar-denominated metals.

 

The US dollar rally comes based on liquidity crunch fears, amid a broad sell-off move in most of the global stock and bond markets, due to fears over a second coronavirus wave.

 

New coronavirus infections continued to rise in the Chinese capital, Beijing, for the second straight day, and the number of coronavirus cases in the US rose to more than 25,000 new confirmed cases on Saturday alone.

 

Gold stocks at the SPDR ETF rose 1.17 metric tonnes on Friday, the third daily increase in a row, to reach the highest total since May 2013 at 1,136.22 metric tonnes.

Europe dives to 3-week lows on concerns over second coronavirus wave

Economies.com
2020-06-15 11:43AM UTC

European stocks fell on Monday, diving to a 3-week low, on investors' risk-aversion, due to fears over a second coronavirus wave in Beijing and the US.

 

The Stoxx Europe 600 index fell 1.2% as of 11:15 GMT, and hit the lowest since May 25 at 344.91 points, after closing higher by 0.3% on Friday, in its first daily gain in 5 days.

 

The index has lost 6% during the past week, posting its first weekly loss in a month, on a gloomy global economic outlook, and fears over a second coronavirus wave in the US.

 

The pan European index opened lower today, dropping to a 3-week low, with most European markets and sectors seeing red today.

 

The mining sector saw the largest losses in Europe today, with a drop by 2.5%, following disappointing Chinese industrial production data.

 

In first coronavirus epicenter, China, the government declared a state of emergency in a Beijing suburb, after a surge of new infections around a wholesale food market.

 

Similarly, the number of coronavirus cases started to rise again in the US, over the weekend, with more than 25,000 new confirmed cases on Saturday alone.

 

S&P 500 futures fell 3.3%, falling to a 3-week low, after the index closed higher by 1.3% on Friday at Wall Street, while the index lost 5.9% on Thursday, in the biggest daily loss since March 16.

 

Back to Europe, the Euro Stoxx 50 index fell 1.4%, France's CAC 40 dipped 1.2%, Germany's DAX fell 1.3%, and the UK's FTSE 100 fell 1.1%.

Frequently asked questions

What is the price of Brent Oil today?

The price of Brent Oil is $68.78 (2025-07-15 19:14PM UTC)