Adam Vettese, UK Market Analyst, eToro, casts an eye over market movers

The price of US crude oil dipped to an 18-year low on Sunday, below US$20 a barrel, after another weekend of headlines documenting the continued spread of the coronavirus pandemic.

The ever bleaker outlook on global energy demand is being compounded by the ongoing Saudi-Russia price war, piling pressure on the oil price. Whilst the dip below $20 was brief, unless we see some material change in the situation, we may well see it challenged again.

Demand has been further hammered as global aviation grinds to a standstill, with UK-based easyJet the most recent airline to announce the grounding of all flights.

"This is a historic price collapse, and it is not done yet as the system physically runs out of places to put all the oil," said one former Obama administration energy advisor.

While markets posted a double-digit gain last week thanks to a $2 trillion stimulus package coming to fruition and new measures taken by the Federal Reserve, investors are now once more focused on the rapid progress of Covid-19.

Despite the huge sums already spent to prop up the economy, US politicians are already reportedly looking ahead to the next potential spending package to combat the economic fallout from the pandemic, which may be even bigger than the last.

On Sunday, President Trump - having said repeatedly that he wanted to open the economy back up as soon as Easter - announced that he was extending his administration's social distancing guidelines through to the end of April.

Those restrictions include instructing people to avoid nonessential travel and large gatherings, but individual states and cities have implemented their own, often tougher, restrictions as well.

Will there be another round of stimulus?

The main lesson from the 2008 global financial crisis is the need to spend generously. With that in mind, US policymakers are already working on another round of stimulus to build on the $2 trillion first step taken last week.

For the next round, Democrats are expected to push for more money for assistance programmes for workers, and to shore up employer pensions that are facing a shortfall, while Republicans would reportedly rather wait-and-see how the situation pans out.

Top-ranking Republican Senator Kevin McCarthy said late last week that he is "not sure we need a fourth package".

House Speaker Nancy Pelosi (a Democrat) contradicted him, stating that "we know that this cannot be our final bill".

Once again, the situation is shaping up to be one that runs the risk of descending into partisan political infighting. Progress on whatever is coming down the pipeline is worth keeping an eye on, as markets reacted heavily to any news of progress or delays to the package that went through last week.

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Adam Vettese, UK Market Analyst, eToro, casts an eye over market movers

The price of US crude oil dipped to an 18-year low on Sunday, below US$20 a barrel, after another weekend of headlines documenting the continued spread of the coronavirus pandemic.

The ever bleaker outlook on global energy demand is being compounded by the ongoing Saudi-Russia price war, piling pressure on the oil price. Whilst the dip below $20 was brief, unless we see some material change in the situation, we may well see it challenged again.

Demand has been further hammered as global aviation grinds to a standstill, with UK-based easyJet the most recent airline to announce the grounding of all flights.

"This is a historic price collapse, and it is not done yet as the system physically runs out of places to put all the oil," said one former Obama administration energy advisor.

While markets posted a double-digit gain last week thanks to a $2 trillion stimulus package coming to fruition and new measures taken by the Federal Reserve, investors are now once more focused on the rapid progress of Covid-19.

Despite the huge sums already spent to prop up the economy, US politicians are already reportedly looking ahead to the next potential spending package to combat the economic fallout from the pandemic, which may be even bigger than the last.

On Sunday, President Trump - having said repeatedly that he wanted to open the economy back up as soon as Easter - announced that he was extending his administration's social distancing guidelines through to the end of April.

Those restrictions include instructing people to avoid nonessential travel and large gatherings, but individual states and cities have implemented their own, often tougher, restrictions as well.

Will there be another round of stimulus?

The main lesson from the 2008 global financial crisis is the need to spend generously. With that in mind, US policymakers are already working on another round of stimulus to build on the $2 trillion first step taken last week.

For the next round, Democrats are expected to push for more money for assistance programmes for workers, and to shore up employer pensions that are facing a shortfall, while Republicans would reportedly rather wait-and-see how the situation pans out.

Top-ranking Republican Senator Kevin McCarthy said late last week that he is "not sure we need a fourth package".

House Speaker Nancy Pelosi (a Democrat) contradicted him, stating that "we know that this cannot be our final bill".

Once again, the situation is shaping up to be one that runs the risk of descending into partisan political infighting. Progress on whatever is coming down the pipeline is worth keeping an eye on, as markets reacted heavily to any news of progress or delays to the package that went through last week.