Thursday, 26 November 2020

Markets fall, positive news “discounted”

Markets fell on Wednesday.

The S&P 500 fell 0.2 percent, the STOXX Europe 600 dipped 0.1 percent and the Shanghai Composite fell 1.2 percent.

“A lot of future positive news regarding the economy and the virus has already been discounted,” said Peter Cardillo, chief market economist at Spartan Capital Securities.

There was some relief on the COVID-19 front, with the World Health Organization reporting that the global acceleration in case incidence has slowed down over the past week, with around 4 million new cases recorded. However, death rates continued to increase, with more than 67,000 new deaths reported across the world.

The number of new cases reported in the European region, which had the highest number of cases globally, declined by 6 percent to 1.77 million in the past week after a decline of 10 percent in the previous week. Some countries are already considering easing restrictions, at least over the Christmas period.

Still, Ursula von der Leyen, president of the European Commission, warned on Wednesday: “Relaxing too fast and too much is a risk for a third wave after Christmas.”

Meanwhile, though, the US reported over 1.1 new million cases, a 14 percent increase from the previous week, while deaths increased by 23 percent with 9,918.

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