Reuters has reported that the US President Donald Trump said on Thursday the US Centers for Disease Control and Prevention would issue guidance for reopening churches very soon, possibly later on Thursday or Friday.
Key comments
We're going to open our churches again.
Tere is a lot of ammunition left from Federal Reserve and Treasury to help the economy.
I think CDC is going to put something out very soon ... They're going to be issuing something today or tomorrow on churches.
Market impact
The US is a very religious country and such an event will lift consumer confidence and retail spending which is vital to the US economy. Churches, like many businesses across the United States, have been mostly shuttered in an attempt to curb the spread of the novel coronavirus, though some states have allowed them to reopen with limitations.
The markets are making hay while the sunshines. As economies open up, demand is expected to pick up and that should support US stocks. However, the risk is that there will not be the kind of pick up the president would hope for. US virus cases continue to rise. the latest report was at just 1.5%; in line with the past week's average.
No matter how much aid the Fed and Treasury dish out, the fac of the matter is, until there is no vaccine, the population could be more inclined to stay at home and not spend the little money they have. More on that here: Global COVID-19 update: Global cases surpass 5 million, financial markets taking it in their stride
Federal Reserve’s Chairman, Jerome Powell, has just commented and said that he believes that the economy will recover but it will take time.
Update
Will not close the country if a second wave of virus hits.
That is big news and should kick into equities and support risk appetite. On the other hand, has Trump just admitted that a second wave of likely and if so, is the US putting hundreds of thousands of lives at risk for the sake of the US economy? Will this mean workers will be forced into work against their will?
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