European equities are set to open slightly higher this morning, with the German index up 0.20 per cent on the day. Stock Market Analysis Today : Is the roller coaster ride set to continue?
October proved to be a turbulent month for global markets, and investors should better buckle up for a continuation of the roller coaster ride in November.
In Europe, the number of countries moving into a second lockdown is increasing. Austria and the UK announced new restrictions as previous measures failed to prevent a surge in new COVID-19 cases.
The outlook for the Eurozone economy is bleak. A double-dip recession seems almost inevitable, and the damage to consumer and investor confidence will have long-term effects.
A scenario where countries are moving back and forth with restrictions is a nightmare for markets, and dealing with the many levels of uncertainty will be a difficult challenge for investors.
Aside from the pandemic, the focus this week will be on the US presidential election. The stock market is expecting a Biden win.
However, neither a Trump nor Biden win would trigger dramatic price action.
For markets, it is far more important that there is no contested election. Stock Market Analysis Today : Is the roller coaster ride set to continue?