Overseas Headlines- May 18, 2020

United States:

U.S. Equity Futures Extend Gain on Vaccine Hope: Markets Wrap.

“U.S. stock-index futures extended gains on Monday after an experimental vaccine showed promising early signs of helping to fend off the new coronavirus. Crude oil advanced. S&P 500 contracts jumped to session highs after Moderna Inc. said its vaccine tests yielded signs it can create an immune-system response in the body. The shares surged 26% in trading before the market opened in New York. U.S. equity contracts earlier traded in the green as major economies took further steps toward re-opening and the Federal Reserve stressed it has more ammunition to combat a downturn. The Stoxx Europe 600 Index rose on gains in mining, energy and airline shares. Stock indexes in Japan, Hong Kong and South Korea all posted modest advances.”



BOE Forecast to Boost Bond-Buying in June to Sustain Virus Fight

“The Bank of England’s promise that it’s willing to do more to help the fight against the coronavirus pandemic is resonating with economists, who expect an increase in asset purchases at the next meeting. Almost half of the 15 analysts surveyed by Bloomberg expect officials to raise their buying target by 100 billion pounds ($122 billion) to 745 billion pounds on June 18. Three said it’ll go even higher.”



Chinese Oil Demand Is Almost Back to Pre-Virus Crisis Levels

“Chinese oil demand is all but back to levels last seen before Beijing imposed a national lockdown to fight the coronavirus outbreak, according to people with inside knowledge of the country’s energy industry. China is the world’s second largest oil consumer, behind only the U.S., and the country’s quick turnaround has helped tighten the petroleum market sooner-than-expected. West Texas Intermediate crude, which a month ago plunged into negative prices, surged on Monday above $30 a barrel.”



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