Today's news headlines: 

‘UK jump in Covid deaths alarms hospital leaders’. Deaths from Coronavirus have risen almost 10.0%, with hospitalisation rising 9.1% between the start and middle of August, according to data from the Office for National Statistics. This new pressure on the NHS is causing disruption for those who've been waiting for treatment since the onset of the pandemic. The hope is that continued vaccination will eventually ease this burden as the backlog of care continues to mount. The short-term trend isn’t encouraging, but patients have generally been coping better with the virus this time around, with shorter periods of treatment needed on average. (Financial Times)

‘Wealthy nations under pressure to pass IMF stimulus on to poor countries’. On Monday, the International Monetary Fund distributed $650bn of funds to its members to soften the blow that the Coronavirus pandemic has had on public finances. The last time such a measure was implemented was during the 2008 financial crisis when liquidity was low. Low-income nations have been overlooked, receiving just $21bn, with $375 going to the top 40 wealthiest nations. The move has been met with staunch criticism from senior figures at Oxfam, who are highlighting the gulf in wealth between rich and poor nations. (Financial Times)

Today

Markets continued to advance yesterday, with the S&P 500 closing 0.15% higher and the Nasdaq finishing 0.52% firmer. Commodity prices also rallied yesterday, as concerns over Covid-19 in China began to ease; Iron ore jumped 8.00% while oil returned above the $70 handle. Major currency pairs are mostly range-bound as markets await Jackson Hole.

Events

Australia Construction Work Done q/q: 0.8% vs 2.4% last month
German ifo Business Climate: 9:00AM
US Core Durable Goods Orders m/m: 1:30PM
US Crude Oil Inventories: 3:30PM

Interbank rates:

GBP/USD – 1.3717
GBP/EUR – 1.1684
EUR/USD – 1.1742
USD/CAD – 1.2621

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