European equity markets are extending losses this morning, with the German index down more than 0.60 per cent on the day. Stock Market Analysis Today: Rising Covid-19 cases in Europe dent market sentiment
Market sentiment has turned sour in Europe as investors are increasingly concerned about the sharp rise in new COVID-19 cases.
More countries are tightening restriction measures and despite their best efforts to avoid another lockdown, governments could soon find themselves in a position where this becomes inevitable.
We may therefore end up again with nationwide lockdowns across Europe – only that this time, they are implemented more gradually and are slightly less strict than earlier this year.
On Wall Street, the mood is more upbeat.
US House Speaker Nancy Pelosi expressed optimism that a stimulus deal might still be reached ahead of the US presidential election. The pressure on both parties has risen significantly over the past few weeks.
The US economy is already losing momentum, and the Federal Reserve has been warning for weeks about the consequences of delayed fiscal support.
Meanwhile, the earnings season in the US is picking up speed.
Netflix presented disappointing numbers yesterday, but figures from Snap significantly exceeded expectations.
Investors are hopeful that strong numbers from technology giants will prop up equity markets. Stock Market Analysis Today: Rising Covid-19 cases in Europe dent market sentiment