Financial markets were volatile again after trading began in Asia on Monday. Gold plunged more than $25 after a high opening, WTI oil plunged 6 percent, U.S. stock futures “circuit breaker”, the dollar strong higher, at one point close to 103. On the news, Democrats in the United States blocked the senate’s stimulus bill after talks failed. US President Donald Trump has declared the state of Washington a “major disaster area” for the latest outbreak, following New York state where more than 30,000 cases have been confirmed.
Spot gold opened higher in Asia on Monday, with gold hitting as high as $1508.20 an ounce in early trading. Gold then plunged more than $25 in the short term to as low as $1482.22 an ounce, down 0.8 percent on the day.
Meanwhile, the dollar continued its strong performance, with the dollar index.dxy hitting a high of 102.97 at the start of the session. The strong dollar also weighed on gold.
U.S. stock futures fell more than 5 percent, touching the downside circuit breaker limit, while dow futures were down nearly 1,000 points.
The outbreak in the United States escalated rapidly over the weekend. A total of 32,717 confirmed cases, 409 deaths and 178 cured cases of covid-19 were reported in the United States as of 6 p.m. Edt on March 22, according to a real-time statistical system of covid-19 data released by Johns Hopkins University. In less than 18 hours Tuesday, 6,670 new cases were confirmed in the United States.
The United States now has the third-highest number of confirmed cases in the world, after China and Italy.
On March 22, local time, US President Donald Trump declared Washington state a “major disaster area” for COVID 19, and ordered the federal government to provide assistance to all levels of the state government. There are currently 1,793 covid-19,793 cases in the state, with 94 deaths. Mr. Trump had already declared New York a “major disaster area”.
Usually, “major disaster areas” are caused by natural disasters, such as floods, earthquakes, etc.
Mr. Trump said he had approved major disaster declaration requests for New York and Washington state. Trump then declared California a major new outbreak disaster area, will provide federal funds to California.
At a White House news conference on Sunday, Mr. Trump announced that he would deploy the national guard to help fight the outbreak in hard-hit states like Washington, California and New York.
Mr. Trump said the region had been moving into a major disaster zone, allowing the federal government to provide more intensive assistance to those states.
The third round of emergency economic aid proposed by republicans in the United States failed to pass a procedural vote in the Senate on March 22. According to us media, the emergency plan has exceeded $1.8 trillion, including cash handouts to us taxpayers and bailouts for businesses.
Democrats have publicly expressed disagreement with the plan, but Republicans are still pushing for a procedural vote.
House Speaker Nancy Pelosi said Sunday that House Democrats are not ready to accept a third round of economic stimulus legislation being drafted by senate republicans because Democrats still have questions about some of the aid provisions. Earlier, White House economic council chairman frank Kudlow said the bill would include up to $2 trillion in economic stimulus.
Democrats in the United States blocked the senate’s stimulus bill after talks failed. Senate majority leader Mitch McConnell said the Senate would vote on the stimulus bill at another time.
Senate minority leader Chuck Schumer said the senate’s novel coronavirus bill has many problems. But Schumer said he was confident the differences over the novel coronavirus bill could be overcome within the next 24 hours.
U.S. President Donald Trump says he will work with house speaker Nancy Pelosi on the stimulus bill. The us may need another stimulus, but hopefully not.
Mr. Trump said he expected Congress to eventually hammer out the stimulus bill.
In a March 22 press interview, st. Louis fed President James Bullard predicted the U.S. unemployment rate could hit 30 percent in the second quarter as the government shut down factories to fight novel coronavirus.