COVID-19 cannot be held back

By 16/10/2020News
Morning Stock News

Gold  1907,14

EURUSD   1,1706

DJIA  28391,50

OIL.WTI  40,85

DAX   12744,22

After all, the coronavirus is beginning to win over the countries of Europe and all areas of the economy are beginning to suffer as a result. France is introducing curfews, and this is already a serious statement.



Thursday was very nervous for investors. Serious restrictions in Europe spilled over into fears for the USA, as the states had registered the maximum number of COVID-19 cases since late summer. All this adds to the fear of investors and makes them withdraw from risk assets.
Of course, many might say that the Initial Unemployment Claims Report contributed to the fall in markets on Thursday, but if you look deeper, the total number of unemployed people has fallen by more than 1 million since the last report. This is a serious indicator that points to a possible recovery in the labour market.
What is happening now is that elections in the US coincide with the second wave of COVID-19, as well as the growing conflict in Nagorno-Karabakh, which could create another hot spot on the world map.
The main indices show a certain correction, which should take on all these fears. The DAX closed on Thursday at 2.58% below the opening price, at 12692. The S&P500 index fell by more than 0.7% to 3450.


Due to the growth of coronavirus disease, the pressure on the European currency is increasing. New restrictions on movement and new social distance measures are being introduced every day. In this situation, it is clear that such changes will not do the economy any good. On Thursday, the EUR/USD falls amid growing problems in Europe and trades below 1.1700.


As soon as oil has positive growth signals, the risk of black gold prices falling immediately increases. Lockdown problems in Europe are putting increasing pressure on the market for oil products. Although it can already be seen that the level of $41 per barrel is a key resistance level in the current situation. So far, we can expect how the economy will behave during the second wave of the coronavirus. Pandemic news is being added every day, which is negatively affecting the price of petroleum products. WTI oil is traded at $40.5 per barrel.

What awaits us today?

02.00 Sale of new housing in Australia for September
11.00 EU Consumer Price Index from the beginning of the year
14.30 US retail sales volume for September

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