- Major European indices close mixed
- Hungary and Poland block EU coronavirus recovery package
- Further states in the US introduce new restrictions
European indices finished today's session in mixed moods as some market participants realized again that the announcement of a drug’s effectiveness against Covid-19 does not mean that drug will be manufactured, distributed and administered at such scale that the pandemic can be declared over. Also Investors also seem to be concerned by the fact that more countries in the region are introducing further restrictions. Sweden moved to restrict the size of public gatherings and a British medical adviser suggested strengthening the three-tier system of restrictions when the full lockdown in England ends. Also news that Hungary and Poland blocked the EU's €750 billion coronavirus stimulus package raised concerns about the region's economic recovery. On the Brexit front UK's chief negotiator David Frost has told PM Johnson to expect an agreement as soon as early next week, while according to different sources suggested that no progress have been made on key issues such as competition rules and fishing. The upcoming EU summit which will take place on 19th November is seen as the final deadline for a draft Brexit deal. DAX 30 fell 0.07%, CAC 40 rose 0.21% and FTSE100 finished 0.94% lower.
US indices are trading mixed with the S&P 500 and the Dow retreating from record closing highs hit a day earlier amid disappointing retail sales for October and surging COVID-19 cases. Yesterday US recorded over 160k new infections, near last week's record of almost 188k cases. As the Thanksgiving holiday approaches more and more states are introducing additional restrictions to limit the spread of the pandemic. California authorities are considering a curfew, Michigan entered partial lockdown which will last 3 weeks. Iowa and Ohio issued a mask mandate while states like Oregon, Washington and New Jersey tightened curbs. Meantime, President elected Joe Biden has warned that the approaching winter will be very dark and urged Congress to pass an economic stimulus package.
US crude futures are trading 0.6% lower while the international benchmark Brent contract fell over 0.8% after meeting of OPEC and its allies failed to give a clear signal about its output policy. According to Reuters recent data showed that oil demand is expected to increase by 6.2 million barrels per day in 2021, a downward revision of 0.3 million barrels per day compared to last month’s assessment. Meanwhile, investors await API report which will be published later in the day. Elsewhere, gold futures fell slightly and are trading around $ 1,886 / oz, while silver futures fell 0.8% to $24.55/oz.
USDJPY – yesterday pair bounced off the local resistance at 105.075 which is additionally strengthened by 50 SMA (green line) and is currently testing major support at 104.27. Should the downward sentiment prevails, then next support at 103.16 may come into play. Source: xStation5
