- Mixed session in Europe
- The pandemic situation in the US and Europe continues to worsen
- Dow Jones and S&P 500 are trying to extend weekly gains
The Friday session on the Old Continent had mixed tone, and the markets lacked a clear direction. Dax rose 0.2%, CAC 40 gained 0.3% and FTSE 100 finished 0.4% lower. It seems the emotions have subsided after the recent rally and the markets have entered the wait-and-see phase. On the data front, secondary estimate showed the Eurozone economy grew by 12.6% in the three months to September, recovering from a record slump of 11.8% in Q1. However, looking at the epidemiological situation in Europe, it is far from optimistic. Italy reported a new daily coronavirus case record of 40,902. That is up from 37,978 yesterday. UK recorded 33,470 infections on Thursday, the highest number since the pandemic began. France is now the worst affected country in Europe, surpassing Russia. Government confirmed the lockdown will last until at least December 1st. France recorded 32,683 hospitalizations on Thursday, surpassing the previous peak of 32,292 on April 14th.
US indices are trading higher despite the surge in new COVID-19 infections. Yesterday US reported another record number of over 150K new cases. This is the tenth day in a row when the number of cases exceeds 100,000. California become the second state reaching 1 million infections following Texas. Number of hospitalizations hit new record high of 67,096. Many regions decided to impose additional restrictions. Chicago's Mayor Lori Lightfoot urged citizens to change Thanksgiving plans and to stay at home. In New York, Governor Andrew Cuomo announced that new restrictions on bars, restaurants, and gyms will come into force today. Meanwhile Dr. Michael Osterholm, a coronavirus advisor to President-elect Joe Biden said that shutting down businesses and paying people for lost wages for four to six weeks could help keep the coronavirus pandemic in check and get the economy on track until a vaccine is approved and distributed. On the corporate front, Disney and Cisco reported upbeat quarterly results. On the week, the Dow Jones and S&P 500 are set to gain more than 2.0% and less than 1% respectively while the Nasdaq is heading for a decline as investors booked profits in market-leading technology stocks, which have benefited from a stay-at-home environment.
U.S. crude futures are trading over 2.0% lower while the international benchmark Brent contract fell 1.5% as investors booked some profits on a rally fueled by vaccine hopes. Many investors are aware that the vaccine will not be available any time soon, while the number of new COVID-19 cases continues to rise, which may pose a threat to fuel demand. For the same reason, gold futures rose 0.8% around $ 1,890 / oz, while silver gained over 1.7% as investors turned to safe-haven assets.
AUDUSD – yesterday pair broke below the major support at 0.7253 and this level is being currently re-tested. Should buyers manage to break above it, then upward movement towards next resistance at 0.7412 could accelerate. On the other hand, if sellers will manage to halt advances here, then downward move towards 0.7133 is possible. Source: xStation5
