The upward movement that started yesterday in global markets was reversed towards the close of the US stock markets. With the announcement that new measures were taken against coronavirus in the US state of California, the gains of up to 2 percent in the US stock markets were given back. As of this morning, US futures are trending horizontally, while Asian markets are experiencing losses of over 1 percent. Pompeo’s South China Sea statements regarding the tension between the USA and China are also among the effective factors in negative pricing. MSCI index, which tracks Asia-Pacific stock markets outside Japan, fell 1.2 percent.
While Japan’s Nikkei index is down 0.8 percent, falling from its one-month peak yesterday.
While there is no significant data calendar other than housing sales in June, dollar/TL is traded at 6.86 and euro/TL is traded at 7.78.
The decline in Brent oil exceeded 2 percent
Oil prices have fallen more than 2% on concerns that reimposed coronavirus restrictions could threaten the recovery in oil demand and OPEC+ may ease supply curbs at its meeting in August.
The nearest term barrel price of Brent crude oil decreased by 2.06% to $41.84, while US light crude oil decreased by 2.39% to $39.14.
Under the current agreement, OPEC+ is preparing to reduce its record supply cut of 9.7 million barrels per day to 7.7 million barrels per day between August and December. According to Citi analysts, reducing supply by 2 million barrels per day starting from August may negatively affect the market, considering the uncertainties in demand.
Gold below $1800
Gold fell below the critical level of $1,800 after the strengthening of the US dollar. While the ounce price of gold in the spot market decreased by 0.3% to $1,797.45, US gold futures decreased by 0.8% to $1,799.60. The ounce price of silver dropped by 0.5% to $18.98 after reaching its highest level since September 2019 yesterday.
Schools and workplaces closed in California
California’s governor on Monday imposed new restrictions as coronavirus cases and hospitalizations rise, while announcing that children in the state’s two largest school districts, Los Angeles and San Diego, will stay home in August.
Democratic Gov. Gavin Newsom ordered bars to close and restaurants, movie theaters, zoos and museums to cease indoor operations. Gyms, churches and hairdressers will be closed in the 30 provinces worst affected by the epidemic.
“It is our duty to realize that COVID-19 will not go anywhere anytime soon until a vaccine or effective treatment is found,” Newsom said in the press release.
The governor said this step was important to stop the increase in coronavirus cases that has overwhelmed hospitals in some rural California counties.
Source: https://www.dunya.com/finans/haberler/piyasalarda-iyimser-hava-tersine-dondu-haberi-475098
