Prices of oil rebounded during Tuesday’s session with Brent for May deliveries rising by more than 13% from Monday’s crash of more than 30%. The rebound follows an announcement by US President Donald Trump on measures to be taken to ignite the economy amid the COVID-19 impact.
Saudi Arabia’s move to boost its production to 10 million barrels per day saw oil prices fall by more than 30%, oil’s biggest crash in almost 30 years. Trump on Tuesday held discussions with Saudi Crown Prince Mohammed bin Salman to discuss Saudis decision.
US Markets turned positive on Tuesday’s market open even as coronavirus remained a key theme as investors await the White House’s relief plan release to support the economy. The Dow gained 800 points at market open (9.31 am ET) despite Monday’s worst fall on Wallstreet since the 2008 financial crisis.
Donald Trump hinted his government would provide a stimulus package to assist the country’s economy as well as urging the Fed to lower interest rates further to the same level as its competitor nations.
The Dow rose 1% at 12:00 pm ET with Microsoft and Apple shares rising by about 3%.
Asia & Europe
During a visit to Wuhan, the epicentre of the CoronaVirus, China’s President Xi Jinping noted that the spread of the had been contained.
China’s National Bureau of Statistics said consumer price index (CPI) rose by 5.2% in February compared to the previous period in 2019. The country January’s annual inflation rate was reported at 5.4%.
On the other hand, Japan announced a $10.7 billion (¥1.1 trillion) financial aid package to boost SMEs affected by the virus outbreak.
In Europe, Italy said it will allow its citizens not to pay mortgages during the outbreak even as the remains on lockdown.