It turned out that things are not that simple in the markets. As soon as the election debate was overshadowed, news from Johnson & Johnson’s about the suspension of testing for a new COVID-19 vaccine, due to an unexplained illness of a volunteer, set the tone for the stock markets to fall.
It’s strange that because of this news, the markets are reacting so strongly, with around 300 COVID-19 vaccines being tested at the same time, but most likely J&J was one of the leaders in this race.
As history shows, it was time for the market to take a break. The explosive growth of the S&P500 index in the last four trading sessions was still waiting for a correction.
Uncertainty awaits further. Quarterly company reports begin, which will reveal the real picture of the current situation. Some will earn enough, others will suffer losses. It will be important for the US to further reduce the unemployment rate, which has a very strong impact on the overall state of the economy.
The situation seems to be stable, but many investors decide to close their risk positions and move to safe assets. On Tuesday, the S&P500 index fell by more than 0.3% to 3520, the DAX closed at 13018, which is 0.9% less than the opening level.
Precious metal is still not allowed to reach its sacred boundaries. Against the backdrop of problems with coronavirus vaccine development in the USA, gold is losing its position and is trading at $1890 on Tuesday. For some reason, on the eve of the US presidential election, investors decided to invest in the dollar. We understand that the dollar is a paper that has been printed quite a lot over the last year, so it is worth thinking about buying gold, which should still grow.
This week was marked by a breakthrough of $11,000 per bitcoin. As we had previously anticipated, the narrowing of the trading range ended with a sharp upward spurt. Someone was buying the cryptocurrency very well in a short period of time, which indicates that big players are interested and that there may be big speculation. So far Bitcoin is doing well and the price is starting to approach the psychological level of $12,000 as well as this year’s highs.
What awaits us today?
09.00 Consumer price index in Spain since the beginning of the year
11.00 Volume of industrial production in the European Union for August
14.30 US producer price index for September
20.00 “Beige Book” by the US Federal Reserve.
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