This week, S&P500 ended up somewhat in the red, while Nasdaq and Dow Jones showing neither losses nor gains. This happened very likely due to two opposite news that nullified each other in terms of sentiment. The good one was that pharmaceutical companies keep showing new and better results when testing their vaccines. On the other hand, the bad news is that the new daily infected cases don’t seem to slow down, reaching a new daily maximum of 195 thousand infected in a single day.
OPEC, taking into account the current situation, decided to push back the increase in production that was planned for January. By doing so, they’re trying to prevent fuel supply from rising, and consequently a fuel price drop. A few stocks from energy companies benefited somewhat from this decision, seeing a valuation over this past week.
When it comes to the pandemic, things aren’t looking that better, numbers are still rising and hospitals are effectively reaching their max occupation for intensive care patients. While this is happening, States are applying more severe confinement rules in order to slow the influx of patients.
To add more wood to the fire, President Trump still refuses to concede the defeat, and Republicans are refusing to reach an agreement in the Senate in order to pass a bill that would help millions of people and businesses in dire need. This week Treasury Secretary Steve Mnuchin announced that they will let the current emergency lending programs expire, saying there’s no need because the economy is improving and is strong enough to stand on its legs. In a highly rare move, the Federal Reserve itself made an announcement criticizing that move, admitting that the economy is still in a very fragile state.
The pandemic is starting to show some signs of slowing down, and some European countries are observing the numbers very closing, and studying the possibility of in the near future ease of the confinement measures.
The European Union is also facing a couple of problems. Firstly, Hungary and Poland are blocking an emergency recovery package to help the damaged economy of several countries in Europe. They’re blocking that package because it comes with a mechanism that would allow the EU to block said funds to countries that violate its rule of law, something that Hungary and Poland and currently doing. Secondly, the Brexit negotiations are facing a delay yet again, this time due to a senior negotiator getting infected by COVID-19. The negotiations will thankfully resume remotely.
In Asia, the economy keeps meeting its expectations, with good economic results, both in China and Japan. On a note about Japan, it’s seeing good improvement in their GDP, especially thanks to the growth in exports and a decline in imports. Unfortunately, Japan might currently see the beginning of a third pandemic wave.
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