Week’s recap October 5-9 2020

The previous week had a weak start, mainly due to the newly “recovered” President Trump’s threats of not approving any fiscal stimulus until elections results are announced. But not even a day after, the President backtracks his statement and announces that he’s willing to approve even bigger fiscal stimulus.

Although the date and size of that said stimulus remain uncertain, thanks to that promise, both American and European markets reacted very positively throughout the rest of the week.

In Europe, even though the stock market rose, the news isn’t all that positive. There has been a big rise in COVID-19 cases all throughout Europe, which led to most countries applying more restrictive quarantine measures. This might lead to far severe measures, much like the beginning of the pandemic, which takes us into a renewed recession.

Another still unresolved set-back is the current deadlock between Europe and the UK. The future of negotiations is still uncertain, the reason being European negotiators wanting some more concessions from the UK before reaching a final stage of negotiations.

In the Asian markets, China surpassed expectations showing better than expected economic data. In Japan, the BoJ revised its view on the economic situation of the country into a more positive view and also observed that the economic stimulus is actually working.

Visit the  Disclaimer for more information.