Markets rattled by the rising US COVID-19 cases

The United States has reported fresh daily records for new Covid-19 case hospitalizations this week, and Biden’s administration is already calling for a 6-week national lockdown to stop the spread.

That might be bullish for technology stocks. In Europe, cases have started to slow down, albeit marginally, as the continent will face two or three more weeks of lockdowns. 

European Central Bank President Christine Lagarde sounded cautious on Thursday, saying the EU economy is still facing difficult times despite the vaccine breakthrough. Meaning, stocks are exuberant and 20% higher in two weeks, but the economic damage is done and won’t be healed for many years to come. 

Yesterday’s US CPI numbers showed the official inflation is still far away from the 2.0 – 2.5% target and it came out weak for October, which might indicate further easing will be necessary in the US. 

Later today, market participants will focus on the US PPI indices, where the same picture should be seen. Additionally, the Michigan Consumer Sentiment Index released by the University of Michigan is due and should improve slightly. 

In the FX, nothing new to report – volatility has been minimal since Monday’s rollercoaster. Metals were consolidating after Monday’s slump, but it looks like the dip was bought and the uptrend may continue.

Source: https://www.axiory.com/market-news/markets-rattled-by-the-rising-us-covid-19-cases