Here is what you need to know on Friday, October 16:
Risk aversion was the only market motor this Thursday. Equities fell and the dollar won against all of its major rivals. Investors were discouraged by coronavirus-related issues.
The number of new contagions in Europe continues to rise exponentially, with France reporting 30,621, the UK announcing 18,980 and Spain reporting 13,318 new COVID-19 cases. In the UK, the London area is moving into the high level of alert this Saturday, amid the sharp increase in new coronavirus contagions. This means that more than half of England’s population will now be living under high alert restrictions. France already announced a curfew, while different levels of restrictions are seen throughout the Union.
In the Brexit front, UK’s chief Brexit negotiator, David Frost, reiterated that the UK wants to reach a trade deal with the EU. He later complained that the EU is no longer committed to working intensively. EU’s Michel Barnier, on the other hand, said that the Union would do everything possible to reach a deal, although he clarified that “not at any price.” Barnier repeated that the UK needs to agree to a level playing field if it wants access to the EU market.
Equities were in the red ever since early Asia, although Wall Street trimmed most of its intraday losses, following comments from US Senator Majority Leader McConnell, who said that they would pass a stimulus aid package after the election if they can’t get a deal with Democrats these days. He added that US President Trump “is talking about a much larger amount for coronavirus relief than I can sell to my members’ in the senate.”
European government bond yields fell to levels last seen in March, although US ones posted modest intraday gains amid McConnell comments.
Gold spent the day trading around 1,900, ending the day with modest gains around $1,905.00 a troy ounce, helped during US trading hours by Wall Street’s bounce. Crude oil prices replicated such behavior, with WTI ending the day a few cents below $41.00 a barrel.
Cryptocurrencies Price Prediction: Cardano, EOS & BTT – American Wrap 15 October
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