LOCKDOWN LEVEL Ver 3.2 [DAY 9]
TOTAL DAYS 116 – 07 HOURS 35 MINUTES
By the close of trade on Monday, the South African rand strengthened against the US dollar.
- However, a surge in the number of COVID-19 cases worldwide curbed risk appetite. A potential coronavirus vaccine developed by Oxford University in the U.K. has produced a strong immune response in a large, early-stage human trial, according to newly released data published Monday in the medical journal The Lancet. Oxford researchers, in partnership with pharmaceutical giant AstraZeneca, are calling their experimental vaccine ChAdOx1 nCoV-19.
- In Washington, Senate Majority Leader, Mitch McConnell and Treasury Secretary, Steven Mnuchin, are scheduled to meet today, to kick off discussions on a proposed $1.00tn coronavirus package. Republicans’ plan for a second fiscal package aims to return kids to schools, boost hiring, and fund coronavirus vaccine development, Treasury Secretary Steven Mnuchin said Monday. President Donald Trump and Republican lawmakers met on Monday to iron out their upcoming stimulus proposal. Congress is staring down a rapidly approaching deadline to pass new spending legislation as relief programs near expiration and surging infection counts threaten a deeper recession.
- The US government has added 11 Chinese companies to its economic blacklist due to alleged human rights violations against China’s Muslim minority groups including Uighurs. The US Department of Commerce announced on Monday a list of 11 Chinese companies and organizations, including auto parts manufacturer KTK Group and a biometric research institution.
- The yield on benchmark government bonds ended mostly higher yesterday. The yield on 2026 bond fell to 7.59%. Meanwhile, the yield on 2023 bond advanced to 4.77%, while that for the longer-dated 2030 issue rose to 9.44%.
In early trade on Tuesday, the US dollar is trading 0.2% lower against the South African rand at R16.6085, while the euro is trading 0.1% lower at R19.0304. The British pound has marginally gained against the South African rand to trade at R21.0536.
By the close of trade on Monday, the euro declined against most of the major currencies.
- News reports indicated that the EU leaders have reached a deal on the EUR750.00bn coronavirus recovery fund after five-days of intense negotiations.
- The U.K.’s recovery is still looking V-shaped and the economy has clawed back about half the output it lost in March and April, Bank of England chief economist Andy Haldane said Monday.
- On the data front, German producer price index (PPI) came in less-than-expected on an annual basis in June. Further, the eurozone’s seasonally adjusted current account surplus narrowed in May.
In early trade on Tuesday, the euro advanced 0.1% against the US dollar to trade at $1.1459, while it has marginally weakened against the British pound to trade at GBP0.9040.
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