U.S. Stock Futures Drop on Earnings; Dollar Gains: Markets Wrap
“U.S. equity futures sank as investors began May pondering gloomy corporate news and the persistent economic turmoil caused by the coronavirus. The dollar rose with Treasuries as a risk-off mood prevailed on what is a holiday in many major markets. Contracts on the Nasdaq 100 index led the declines, with those on the S&P 500 and Dow Jones Industrial Average also falling in the wake of sobering comments from Amazon.com Inc. and Apple Inc. about the pandemic’s impact. Treasuries climbed while gold fell, heading for its worst week since mid-March.”
ECB’s Stealth Rate Cut Lures Banks to Fund Virus-Hit Economy
“The European Central Bank’s surprise tweaks to monetary policy amount to an effective interest-rate cut that puts banks on the frontline of the euro area economic recovery. The move to start a new source of funding and lower the rate on long-term facilities designed to promote lending will probably ease the stress in Europe’s money markets. And banks, which have been hoarding cash, could then boost lending and ramp up their bond buying to use as collateral for more ECB funds.”
Singapore Unveils New Healthcare Measures as Covid-19 Cases Jump
“Singapore’s government outlined a plan to expand healthcare facilities for foreign workers as coronavirus cases in the city-state jumped, reversing a downward trend. The Ministry of Health on Friday confirmed an additional 932 cases, the vast majority of whom are work permit holders residing in foreign worker dormitories. Five are Singaporeans or permanent residents. That brings total confirmed cases to almost 17,000.”
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