Traders took some profits from yesterday’s massive rally in stock indices, and Tuesday saw some selling early in the EU morning.
During the Asian session, China’s exports grew at a slightly faster rate in September, up 9.9% yearly, compared with a 9.5% increase in August. This marks a fourth straight month of gains, suggesting that the Chinese economy continues to recover.
Not so positive data came out of Germany, where inflation runs below zero, most likely prompting the ECB to ease monetary policy further soon.
Later in the day, German ZEW surveys are due, and the market expects a deterioration from previous levels. More lockdowns and restrictions are certainly bad for businesses.
Inflation data are also due from the US later in the day, and the CPI index is forecast to improve slightly to 1.4%. However, that is still far far away from the Fed’s target of 2.5%.
Additionally, Johnson & Johnson paused its Covid-19 vaccine candidate clinical trials due to an unexplained illness in a study participant. Equities corrected some of their yesterday’s gains after this news.