In efforts to support their falling economies, the world's wealthiest nations prepared to unleash trillions of Dollars of spending to lessen the fallout from the Coronavirus outbreak, as well as imposing social restrictions not seen since World War Two.
Oil prices fell for the third session on Wednesday with U.S. crude futures tumbling to a 17-year low as the outlook for fuel demand darkened with travel and social lockdowns triggered by the Coronavirus epidemic.
Crude Oil was trading down $2.03, or more than 7%, at $26.70 a barrel after dropping as low as $26.66, its weakest since late 2003. And Brent Oil was trading down 37 cents, or 1.29%, at $28.36 a barrel, after dropping to $28.05, the lowest since early 2016.
“The oil demand collapse from the spreading Coronavirus looks increasingly sharp,” Goldman Sachs said in a note forecasting a fall in the price of Brent to as low as $20 a barrel in the second quarter, a level not seen since early 2002.
The Pound fell to its lowest level against the Dollar in over three decades as the shocks caused by the Coronavirus massacred through global markets. Sterling fell as much as 2.5% to $1.1758, surpassing even the lows it recorded in the aftermath of the 2016 Brexit vote. It was at this value in 1985 when the world's wealthiest nations signed the Plaza Accord to weaken the Dollar and haul the U.S. economy out of a recession.
New developments in treating the virus
Chinese medical authorities have claimed a drug used in Japan to treat new strains of influenza appears to be useful for those infected with the Coronavirus, Japan’s state broadcaster NHK reported.
Zhang Xinmin, director of China’s National Center for Biotechnology Development, said the Favipiravir drug had produced positive outcomes during clinical trials in Wuhan and Shenzen. The report on Tuesday said 340 patients had taken part in the clinical trials.
Sources: investing.com, cnbc.com, markets.businessinsider.com, bloomberg.com
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