After weeks of debate, Republicans and Democrats reached a conclusion: to do nothing.
By doing so, the fiscal stimulus intended to help companies in dire need and the common citizen will be put on hold. This is reflected in this week’s stock indexes, where we witnessed, in some of them, drops of 10%.
Contradictorily the USA had some good economic data this week. Among them, we highlight the significant GDP recovery and a slight drop in the unemployment claims. Even though, the latter still remains in historic highs, around 8 million claims.
The recent and encouraging news about the vaccines being developed is somewhat being drowned by other news about the aggressive political situation. Where the spotlight is around the bad management of the pandemic and the economic situation.
The European market situation hasn’t changed much from the past couple of weeks. It followed along with the EUA stock exchange and also had some index drops, partially due to the rising quarantine measures imposed by a growing number of European countries. The fear these measures will bring about another recession is pilling up, especially because Europe is already in a dire economic situation.
Also this week, the ECB announced that they will keep their monetary stance intact and will be keeping a close monitoring of the economy and its evolution. In case the situation worsens, we might see a reinforcement of their fiscal stimulus.
In Asia, the outlook remains the same. Even though Japan has shown a good indication of economic recovery, BOJ cautions for future deflation due to the pandemic. China keeps exhibiting good economic growth thanks to the rise in the electronic manufacturing industry.
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