Thursday 29th October 2020
US equities have been hit hard today, the third day of losses, with the US dollar rising. NAB’s David de Garis said the markets hit the decks running as they opened in Europe, running away from risk. There’s growing concerns about the rising COVID infection rates, and, more significantly, rises in death rates in Europe and the US. Macron could be about to announce a significant lockdown of the French economy soon. Meanwhile, although Biden is still expected to win the US election next week, there are growing concerns about how clear the win will be, and whether President Trump will contest the result. If central banks have run as far as they can, the only injection for COVID-hit economies will come from fiscal measures. That was the gist of the message from the Bank of Canada, and is likely to be echoed by the ECB today. This morning the NAB business survey will give an invaluable read on expectations for Q3, whilst the US GDP numbers later on will show the extent of the country’s bounce back.