Asian markets

Treasury Secretary Janet Yellen has warned that the US government would likely run out of cash by June 1

A look at the day ahead in Asian markets from Jamie McGeever.

A look at the day ahead in Asian markets from Jamie McGeever.

Traders will be poring over policymakers' views on the outlook for the world's biggest economy as they try to rein in inflation while nurturing growth.

Asian currencies will wallow in the near-term, analysts forecast this week, with any respite from their first-half losses only likely to come in the form of proactive policy normalization by regional central banks combined with a Chinese recovery.

The news fanned hopes the global economy could soon begin to get back on track.

Hopes that a treatment for the killer disease will be rolled out as soon as this year put a rocket under stocks such as airlines.

Analysts said Tuesday's election was good for equities as the expected Democratic sweep of Congress failed to materialise.

Analysts warning the fresh infection spikes and failure to pass a new stimulus would likely knock the recovery off track.

Traders have also given up almost any hope for a new US stimulus package being passed before next Tuesday's election.

Despite months of arduous talks in Washington, there appears to be little chance Republicans and Democrats will hammer out a rescue deal.

Equities have swung back and forth over the past week as the stimulus discussions keeps traders on their toes.

Investors are also keeping tabs on post-Brexit trade talks, with Britain welcoming signals that the European Union was ready to intensify them.

With new virus cases, former FDA commissioner warned the US may experience "at least one more cycle" of the virus in autumn and winter.

A key worry is a spike in new virus cases in key economies that have led to containment measures being reimposed.

Brexit tensions and uncertainty over the US presidential election are keeping gains in check.

The pound was struggling to fight its way out of a trough as sparring between Britain and the EU raised the prospect they will not reach a trade agreement.

US traders returned from a long weekend to resume the selling that sent shudders through markets last week as they fretted over lofty valuations of equities.

China-US tensions and a lack of progress in Washington stimulus talks -- all against the backdrop of the coronavirus -- were keeping markets from surging.

The mood in Asia was more downbeat compared with earlier in the week.

Buying was also boosted by news that Trump had expanded the use of a coronavirus treatment using plasma from people who had recovered from the disease.

Uncertainty over the stimulus, rising US infections and the Fed's massive bond-buying has hurt the dollar.

Analysts said there was little reaction to news that trade review talks between the superpowers due to have taken place Saturday had been postponed.

There was also some cheer about Joe Biden's choice of Kamala Harris as his running mate for November's election.

Reports said Mitch McConnell would soon unveil a $1 trillion plan after overcoming some differences with the White House.

An index of US consumer sentiment last week showed it hit a three-month low in July.

Nervousness continues to permeate trading floors as infections spike around the world.

A worrying increase in new cases across the planet has forced governments to revert to measures aimed at preventing the disease's spread.

Investors welcomed German biotech firm BioNTech's comments about a vaccine candidate would be ready for regulatory review by the end of the year.

The easing of lockdowns and a healthy run of economic data have provided a boost to world markets in recent weeks.