Major stock indices around the world seem to be falling below the levels of yesterday's closing with an accelerating epidemic and new infection records. All this may imply fears of implementing further restrictions and a greater economic slowdown in the fourth quarter than previously expected.
Europe is experiencing the second wave of the COVID-19 pandemic. Spain and France have exceeded 1 million infections. Records of the disease are also noted in Germany with 12,331, the United Kingdom with 26,688, Italy with 15,199, and the Czech Republic with 14,968. European leaders across the continent have introduced new restrictions to limit the spread of the disease. The Rome area has recently introduced a curfew, France is to extend the measure, and Spain is considering introducing a curfew in the Madrid area.
This week, American vaccination trials conducted by AstraZeneca and J&J may be resumed. Globally, the number of people infected with the coronavirus has exceeded 41.2 million, of which at least 1.13 million have died and 28.12 million have recovered, according to data published by Johns Hopkins University. As a result of economic restrictions in Europe, the German DAX index seems to decrease by 0.8 percent. French CAC40 is down by 0.78 percent and Italian FTSE MIB is down by 0.75 percent. Spain's IBEX index seems to lose the most - over 2 percent.
In the United States, futures on the main American indices are also falling. In the morning, contracts on Dow Jones lost nearly 100 points, S&P 500 nearly 5 points and Nasdaq nearly 10 points. Apart from the growing epidemic, investors may also be negatively affected by uncertainty about the aid program for the US economy. The President of the House of Representatives Nancy Pelosi and Treasury Secretary Steven Mnuchin have not yet announced the agreement on Wednesday and will return to negotiations on Thursday. The lack of agreement so far casts aside the chance to vote on the bill in the House and the US Senate before the November 3 presidential election. Today investors will follow the final debate between Donald Trump and Joe Biden in the face of information that Iran and Russia are trying to interfere in the presidential elections. Currently Joe Biden is still leading the polls.
In the currency market, it is impossible not to mention yesterday's rise in the value of the British pound. The pound seemed to be strengthening on the one hand after information that the European Union and the United Kingdom have not broken off talks and will continue to do so, and after statements by the deputy head of the Bank of England. Dave Ramsden said yesterday that now is not the right time to cut interest rates below zero, as the British economy and the financial system are already struggling with the effects of the crisis unprecedented. Negative rates could have very negative effects on the financial sector.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trade this news from Conotoxia Ltd. platforms
Go to your account
