Morning wrap

8:25 AM July 10, 2020

• US indices finished yesterday's session mixed. S&P 500 lost 0.6% while Dow Jones dropped 1.4%. In contrast, Nasdaq rose 0.5%

• Risk-on off can be spotted during the Asian session. Nikkei fell 0.36%, Kospi trades 0.7% lower and Hang Seng fell 1.17%. S&P/ASX 200 trades 0.32% lower. Dax futures point to a lower opening of the European session

• The total number of confirmed coronavirus cases surpassed 12.39 million of which more than 557 000 died and over 7.22 million recovered

• Victoria chief medical officer is expecting that Australia will reach its peak of new infections next week.  This comes after a jump to 288 new cases seen in the state today

• Australia will reduce the number of citizens allowed to return from overseas each week by 50%. From Monday maximum of 4,000 people will be allowed to return each week

• Texas reported a record 105 deaths from COVID-19 yesterday

• New York has banned large events through until October

• WHO say coronavirus might be spread in the air

• Tokyo Metropolitan Governor Koike Yuriko confirmed there were 224 COVID-19 cases Thursday, which was a record high

• Goldman Sachs believes that additional measures will be needed in order to contain spread of  the coronavirus in the US

• UK rejected EU coronavirus vaccine scheme

• Japan and Australia are planning to resume limited travel between the two countries

• China state funds reportedly selling stocks. Two state-backed funds said they planned to trim holdings in a sign that the government wants to slow down the rally

• British Retail Consortium  warns of higher prices if UK and European negotiators fail to reach a post-Brexit trade deal

• Reuters reported that China's aviation industry lost CNY 34.25 billion in Q2, due to pandemic

• New Zealand budget deficit is lover compare to analysts' forecast

• New Zealand card spending for June: Retail +16.3% m/m (expected +15.0% )

• Japan PPI for June +0.6% m/m ( expected +0.3%)

• North Korea says a summit meeting this year with Trump is unlikely

• Economists at Kiwibank say they expect the RBNZ to eventually double their QE program

• USD and JPY are leaders among major currencies while AUD and NZD lag the most

Yesterday was the worst day in terms of new confirmed Covid-19 cases. WHO warned on Thursday that the coronavirus was not under control in most of the world and situation is getting worse.Source: worldometers, XTB

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