Europe Points Higher, Covid Concerns Remain
Fiona Cincotta October 14, 2020 2:35 PM
European stocks are pointing to a mildly positive start on Wednesday, although any gains are expected to be limited as covid fears remain.
Wall Street closed lower overnight, snapping a 4-day winning streak as coronavirus concerns dragged on sentiment and additional US fiscal stimulus looked even more elusive. European stocks are pointing to a mildly positive start on Wednesday, although any gains are expected to be limited as covid fears remain.
However, with covid cases rising in the UK and on the old continent more localised lockdown will keep risk sentiment in check. The UK is even considering a two-week circuit breaker lockdown in the coming weeks. Let’s not forget that we are only in Autumn, meaning that this could be a very long winter as governments struggle to get control of the spread of the virus. Needless to say that these measures could quickly derail the already very fragile economic recovery.
Brexit talks will be in focus as the 15th October deadline draws into focus and it appears that very little progress has been made between the EU and the UK. British PM Boris Johnson is set to meet with EC President Ursula von der Leyen in attempt to inject some urgency and political momentum into the talks before Boris Johnson potentially walks away from talks tomorrow.
More US banks earnings
US Earning season kicked off with a bang with north JPMorgan and Citibank managing to impress. Bank of America, Goldman Sachs and Wells Fargo will be in focus today
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.