As daily Covid cases are breaking the 500,000 threshold, the final bell on Friday marks the end of a week that global equity wants to forget. Unfortunately, this is a busy, nail-biting smorgasboard headline smorgasboard, which investors will consider next week, doesn’t seem likely.
For today, the photos were quite dark. Eurozone GDP recorded a growth of 12.7% in the third quarter, with little response from traders.
With this in mind, CAC rose 0.54% to 4,594 points, but Germany’s DAX, which led weekly losses, fell 0.36% to 11,556.
IG’s chief market analyst Chris Beauchamp said Alphabet, Amazon, Apple and Facebook all violate market sales estimates and “despite outperformance across (…) large tech revenues, there will be a decline (…) happening.”
In fact, Amazon, Apple and Facebook all fell more than 5% on Friday, leading to wider market sentiment with a lower move. This led the Dow Jones to drop 1.11% to 26,363 points.
Meanwhile, the FTSE was largely standing there. Despite data coming out of stocks like IAG and NatWest, the British index decided to see the explosion and tile ble fly about it, but hoped it would sit tight and not discover it was hidden under the blanket.
In Beechamp’s opinion, this tactic of delaying Covid policy does not utilize British stocks. “The US and the UK continue to hold back the second national lockdown, but we feel that the longer the delay, the longer the lockdown will be.”
Discussing next week’s packed calendar, Connor Campbell of Spreadex Financial Analyst said:
“Next week is one of those ridiculously stacked periods where four or five headline stories are all about to attract investors’ attention. Of course, there’s Tuesday’s election. The aftermath of that is due to a) the way in which mail-in votes are counted in a particular state and b) the potential resistance to withstand if potential resistance loses.
“Additionally, there’s a bank meeting expanding England’s stimulus at lunchtime on Thursday, a Fed statement after elections on Thursday evening, and a non-farm employment report for Friday in October, not to mention concerns about the ever-present coronavirus lockdown that have destroyed markets so much in the past few days.”
“It could give a strange touch next week, with the horrors of pre-voted jitter and Covid-19 that dominates the first half, as well as the aftermath of the election and central bank statements leading the second half. Hope to leave October volatility seems highly unlikely, regardless of how things are coming into the environment.”
Beauchamp adds: But as Biden appears willing to close the US to control the virus, the victory for Democratic leaders has seen markets fall as the nationwide lockdowns will overshadow exciting optimism. ”
