Stocks decline again as risk-off sentiment reappears

US equities were down for the third day, which is unusual nowadays. Indices futures were half a percent lower during the London session, erasing Monday’s gains. 

During the Asian session, Australian labor market data came out better than expected, although still worrisome. The employment change for September dropped to -29,500 (from 111,000 previously), so the Australian economy lost 29,500 jobs in September. 20k of those were full-time. The unemployment rate worsened to 6.9% from 6.8% previously. The Australian dollar was down 50 pips, or 0.65%, after the numbers

Moreover, Chinese CPI fell notably to 1.7% year-on-year, down from 2.4% previously. The PPI also worsened to -2.1%. Both data are for September and suggest the Chinese central bank might lose monetary policy further.

COVID cases are rising sharply across Europe, leading to another round of lockdowns and restrictions, which will hinder Europe’s economic growth.

Despite the global push for a Covid-19 vaccine, with dozens in clinical trials and hopes for initial inoculations this year, WHO Chief Scientist Soumya Swaminathan reiterated Wednesday that mass shots were unlikely to be widely available soon.

Later in the day, investors will focus on US jobless claims and the NY empire state manufacturing index.

Source: https://www.axiory.com/market-news/stocks-decline-again-as-risk-off-sentiment-reappears