Weekly News Summary for April 10-16, 2020

Friday, April 10, 2020: US CPI Registers Biggest Drop since January 2015

US consumer prices dropped by the greatest amount in over five years in March. A further fall is expected, as the COVID-19 crisis curbs the demand for some products and services. This is offsetting price increases associated with shortages caused by disruptions to the supply chain.

The Labor Department stated on Friday that its consumer price index (CPI) slipped 0.4% last month. This is its largest decline since January 2015, following a 0.1% surge in February.

Monday, April 13, 2020: Oil Prices Mixed after Major OPEC Output Cut

Oil prices traded mixed on Monday after the OPEC and allies led by Russia reached an agreement to cut output by 9.7 million bpd in May and June. This marks the deepest reduction deal ever established by the world’s oil producers.

US WTI crude oil futures gained 1.1% to $23.03 a barrel, having dropped as low as $22.05 earlier in the session, global benchmark Brent oil futures shed 0.7% to $31.25 a barrel.

Tuesday, April 14, 2020: Europe’s Big Three Likely to Prolong Lockdowns

Italy and Spain, the two European countries that suffered the worst COVID-19 hit, began to ease their restrictions on non-essential business amid signs that the pandemic has reached its peak there. However, both economies stayed mostly closed.

Europe’s big three, however, are expected to remain in near-complete lockdown for at least two more weeks. France is already announcing to prolong quarantine through May 11 and Germany will likely do the same. Meanwhile, the UK is preparing to extend its lockdown for another three weeks.

Wednesday, April 15, 2020: US Airlines to Receive $25 Billion Financial Aid

The US government has agreed with major airlines over a $25 billion financial aid to support the industry that has been hit by the coronavirus pandemic.

American Airlines and Delta Air Lines were the two biggest recipients of the bailout. They received $5.8 billion and $5.4 billion respectively, while Southwest will receive $3.2 billion. JetBlue, as well as other airlines, have filed for aid, most of which the government is distributing as a grant.

Thursday, April 16, 2020: Stocks Down, Dollar Up as COVID-19 Hits Growth

Asian stocks fell from their highest for a month, while the US dollar continued its rally on Thursday as the impact that the COVID-19 has brought on global growth weakened appetite for risk.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped around 1%, losing early week increases that had sent the index to its highest level since mid-March, while the greenback posted its best two-day gains in a month against the Australian and New Zealand dollar.