Here is what you need to know on Friday, November 13:
Markets are on the back foot as rising COVID-19 figures cast a cloud over the economic outlook and push aside upbeat data and vaccine hopes. The US dollar is falling with yields while gold edges higher. Eurozone growth statistics and US Consumer Sentiment are eyed.
Coronavirus cases hit a new daily high of over 150,000 in the US. Hospitalizations topped 67,000 and additional restrictions are planned in major cities such as New York and Chicago. Funds are flowing from stocks to bonds, pushing Treasury yields lower and weighing on the dollar. The yen stands out as the beneficiary of safe-haven flows while gold is gaining some ground as yields fall.
Federal Reserve Chairman Jerome Powell, European Central Bank President Christine Lagarde, and Bank of England Governor Andrew Bailey contributed to the cautious mood by warning about the impact of the virus. While they nodded optimism about the virus, all three said monetary and fiscal support is needed for some time.
US elections fallout: Additional Republican officials are gradually acknowledging President-elect Joe Biden’s victory and/or calling to provide him with security briefings as part of his transition.
President Donald Trump is pushing forward the nomination of Judy Shelton – a controversial figure supporting a return to the gold standard – to the Federal Reserve. He also signed an executive order forbidding investment in firms controlled by the Chinese army.
Brexit talks continue in London amid infighting in Downing Street. Dominic Cummings, a senior adviser to Prime Minister Boris Johnson, is on his way out. The EU and the UK are still at odds over fisheries and state aid.
Eurozone Gross Domestic Product is forecast to be confirmed at 12.7% growth in the third quarter after a collapse in the third quarter.
The University of Michigan’s preliminary Consumer Sentiment Index for November is set to tick up, yet remain below pre-pandemic levels. The survey serves as a leading indicator of expenditure.
See Michigan Consumer Sentiment November Preview: Is a confidence collapse coming?
Bitcoin has been extending its upward march, holding onto gains above $16,000. Ethereum is lagging behind, trading around $460.
More What you need to know about the dollar in the post-vaccine announcement world
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