This week, we witnessed a peculiar behavior in the stock market. Normally, the markets “wait” for some results to come out, being that the expected behavior would be a more neutral and stagnated week waiting for the American presidential election results to come out. Curiously, the opposite happened, while waiting for the results, the stock market indexes saw one of the biggest rises since April.
Also this week, the Federal Reserve meeting took place, but they announced no changes to their fiscal program. The Federal Reserve noted an improvement in economic drivers like the unemployment rate, even though it doesn’t constitute a full-blown recovery. They believe the pandemic will still have a big impact on the economy and said to be available to use the tools at their disposal to help the economy.
In Europe, curiously the markets followed the upwards tendency of the USA’s. Which shows the risk-on environment we’ve seen this week, especially considering the current context in Europe, where countries are imposing long term lockdowns to prevent further rises in COVID-19 cases. This took the Bank of England to action and they announced the increase of their bond-buying program in an attempt to stimulate the economy.
The Asian market is already in a more advanced phase of pandemic control, seeing a far lower number of cases, and having better than expected corporate earnings in Japan. China is seeing improvements along the same lines as Japan.
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