LOCKDOWN LEVEL Ver 3.1 [DAY 37]
TOTAL DAYS 102 – 07 HOURS 16 MINUTES
By the close of trade on Monday, the South African rand strengthened against the US dollar.
- New coronavirus cases continue to surge Monday, with the U.S. re-emerging as a global hot spot, while Wall Street continues to defy the dangers after President Donald Trump over the weekend played down the threat of COVID-19. Trump’s signing of an extension of a federal program providing forgivable loans to small businesses hurt by the coronavirus helped to assuage some concerns over the increased case tally. New confirmed cases of the coronavirus that cases COVID-19 rose to 2.91 million in the U.S., after record daily increases were seen over the holiday weekend, with death tolls climbing to 130,090
- In the US, the ISM non-manufacturing PMI for June rose to its highest level since the survey was created in 1997, almost returning to its pre-COVID-19 levels.
- The yield on benchmark government bonds rose yesterday. The yield on 2026 bond rose to 7.77%. Further, the yield on 2023 bond advanced to 5.02% while that for the longer-dated 2030 issue rose to 9.52%.
In early trade on Tuesday, the US dollar is trading 0.1% higher against the South African rand at R17.0013, while the euro is trading 0.1% higher at R19.2300. The British pound has gained 0.2% against the South African rand to trade at R21.2445.
By the close of trade on Monday, the euro advanced against most of the major currencies.
- Sajid Javid has resigned as the head of the U.K.’s finance ministry, surprising financial markets and political pundits in the country. He has served as finance minister (known as the Chancellor of the Exchequer in the U.K.) since July, when Boris Johnson was first appointed prime minister. He will be the shortest serving U.K. finance chief since 1970. Javid — the son of a Pakistani bus driver who previously served as home secretary — was due to present Britain’s budget in March, the U.K.‘s first after its departure from the EU last month.
- A second Spanish region made up of 70,000 people is going back into lockdown after a new coronavirus outbreak. Entry into and out of La Marina, which lies 90 miles east of La Coruna in Galicia, will be banned from midnight tonight and gatherings of more than ten people will be banned to limit the possibility of contagion. Locals will not be stopped from moving within the 14 municipalities that make up the region. The use of face masks will also be made mandatory at all times outdoors, including on beaches and swimming pools. Bars and restaurants will have to respect new closing times and tighter restrictions.
- The eurozone’s retail sales rebounded on a monthly basis in May, signaling a sharp recovery in sales after record drops in March and April.
- Further, investor morale in the eurozone improved for a third straight month in July.
- German factory orders moderately rebounded on a monthly basis in May, signaling that the recovery from COVID-19 will be slow and painful.
In early trade on Tuesday, the euro has marginally advanced against the US dollar to trade at $1.1311, while it has marginally weakened against the British pound to trade at GBP0.9051.
Below is a link to a very detailed Covid-19 picture giving stats and graphs.