Today the financial markets are dominated by angst, as the world is now worried about a second wave of the coronavirus pandemic, even as some countries are still struggling with the first one.
Russia now has over 240,000 cases of Covid-19, making it the third most affected country after the United States (1.4 million) and Spain (270,000). Because Spain has already seen the peak of the outbreak and is not seeing any new cases at present, Russia will likely overtake it this week. The disease is also claiming more patients in Mexico, Pakistan, Bangladesh, and India at present.
Meanwhile, countries like South Korea and Germany, which already saw the peak of the pandemic and have since relaxed their safety measures, are now beginning to see new increases in the number of Covid-19 patients. This indicates that a second wave of the disease is likely to sweep through the world again.
China, where the coronavirus first appeared, is also seeing a new round of infections. The Chinese government is back to imposing strict lockdowns on the cities affected.
Health officials in the United States, where the pandemic is the most widespread, have warned against easing out of the lockdowns too quickly and causing a second wave of Covid-19 as well.
Right now the US government is also wrestling with further stimulus plans. House Democrats came forward with a bill to continue supporting the people and businesses affected by the pandemic, but it did not meet with approval by the Senate.
Later today we expect a speech by Fed Chairman Jerome Powell. Many are speculating that the Federal Reserve might slash interest rates below zero this year, but recent speeches by other important Fed officials have not confirmed this. Thus, Powell is unlikely to deliver news of negative rates today, even if President Trump criticizes him for it.
