Markets mixed while US suspends tariffs for some imports - 20.4.2020

The dollar resumed strengthening after reversal Friday as the Index of Leading Economic Indicators showed a record 6.7% drop in March. The ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped 0.1 Friday but is higher currently. The EUR/USD and GBP/USD reversed retreating yesterday but are lower currently, while USD/JPY turned higher with AUD/USD little changed.

Futures on three main US stock indexes are down currently as US suspended tariffs for some imports affected by pandemic but not goods from China. President Trump said on Sunday Democrats and Republicans are near agreement on extra money to help small businesses. Companies including Netflix, Coca Cola, AT&T and IBM will report earnings today. Stock indexes in US and Europe rebounded on Friday. The three main US stock indexes recorded gains ranging from 1.4% to 3.0%. European stock indexes are lower currently. Germany signaled more aid for businesses and workers overnight after it announced plan to reopen its economy on Friday. UK government meanwhile unveiled $1.6 billion rescue package for tech start-ups hit by coronavirus outbreak as it extended by a month until the end of June the furlough scheme for workers. Asian indexes are mixed today: Nikkei fell on report Japan's exports fell more than expected in March.

Brent is falling today as continuing shutdowns all over the world negatively impact global crude oil demand. US oil prices plunged Friday on reports oil storage in the US was filling up and oil flows were routing back into the Cushing, Oklahoma hubs. June Brent however added 0.9% to $28.08 on Friday, recording 10.8% drop for the week.